Correlation Between Rojana Industrial and Bangkok Ranch
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Bangkok Ranch at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Rojana Industrial and Bangkok Ranch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Bangkok Ranch PCL, you can compare the effects of market volatilities on Rojana Industrial and Bangkok Ranch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Rojana Industrial with a short position of Bangkok Ranch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Bangkok Ranch.
Diversification Opportunities for Rojana Industrial and Bangkok Ranch
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rojana and Bangkok is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Bangkok Ranch PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Ranch PCL and Rojana Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Rojana Industrial Park are associated (or correlated) with Bangkok Ranch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Ranch PCL has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Bangkok Ranch go up and down completely randomly.
Pair Corralation between Rojana Industrial and Bangkok Ranch
Assuming the 90 days trading horizon Rojana Industrial Park is expected to generate 2.17 times more return on investment than Bangkok Ranch. However, Rojana Industrial is 2.17 times more volatile than Bangkok Ranch PCL. It trades about 0.08 of its potential returns per unit of risk. Bangkok Ranch PCL is currently generating about -0.2 per unit of risk. If you would invest 595.00 in Rojana Industrial Park on August 28, 2024 and sell it today you would earn a total of 65.00 from holding Rojana Industrial Park or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Bangkok Ranch PCL
Performance |
| Timeline |
| Rojana Industrial Park |
| Bangkok Ranch PCL |
Rojana Industrial and Bangkok Ranch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Bangkok Ranch
The main advantage of trading using opposite Rojana Industrial and Bangkok Ranch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Bangkok Ranch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bangkok Ranch will offset losses from the drop in Bangkok Ranch's long position.| Rojana Industrial vs. WHA Public | Rojana Industrial vs. TPI Polene Power | Rojana Industrial vs. Bangkok Expressway and | Rojana Industrial vs. BGrimm Power Public |
| Bangkok Ranch vs. GFPT Public | Bangkok Ranch vs. Asian Sea | Bangkok Ranch vs. Buriram Sugar Public | Bangkok Ranch vs. Ichitan Group Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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