Correlation Between Stock Exchange and Bangkok Ranch
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and Bangkok Ranch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Bangkok Ranch PCL, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of Bangkok Ranch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Bangkok Ranch.
Diversification Opportunities for Stock Exchange and Bangkok Ranch
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stock and Bangkok is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of 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 Stock Exchange 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 Stock Exchange Of 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 Stock Exchange i.e., Stock Exchange and Bangkok Ranch go up and down completely randomly.
Pair Corralation between Stock Exchange and Bangkok Ranch
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.62 times more return on investment than Bangkok Ranch. However, Stock Exchange Of is 1.62 times less risky than Bangkok Ranch. It trades about -0.03 of its potential returns per unit of risk. Bangkok Ranch PCL is currently generating about -0.1 per unit of risk. If you would invest 155,950 in Stock Exchange Of on August 31, 2024 and sell it today you would lose (13,196) from holding Stock Exchange Of or give up 8.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Stock Exchange Of vs. Bangkok Ranch PCL
Performance |
| Timeline |
Stock Exchange and Bangkok Ranch Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Bangkok Ranch PCL
Pair trading matchups for Bangkok Ranch
Pair Trading with Stock Exchange and Bangkok Ranch
The main advantage of trading using opposite Stock Exchange and Bangkok Ranch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. Jasmine Telecom Systems | Stock Exchange vs. TMBThanachart Bank Public | Stock Exchange vs. Information and Communication | Stock Exchange vs. TISCO Financial Group |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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