Correlation Between Silicon Craft and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Bangkok Dusit 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 Silicon Craft and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Bangkok Dusit Medical, you can compare the effects of market volatilities on Silicon Craft and Bangkok Dusit 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 Silicon Craft with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Bangkok Dusit.
Diversification Opportunities for Silicon Craft and Bangkok Dusit
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silicon and Bangkok is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Silicon Craft 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 Silicon Craft Technology are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Silicon Craft i.e., Silicon Craft and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Silicon Craft and Bangkok Dusit
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Bangkok Dusit. In addition to that, Silicon Craft is 2.01 times more volatile than Bangkok Dusit Medical. It trades about -0.02 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.0 per unit of volatility. If you would invest 2,671 in Bangkok Dusit Medical on September 2, 2024 and sell it today you would lose (146.00) from holding Bangkok Dusit Medical or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Silicon Craft Technology |
| Bangkok Dusit Medical |
Silicon Craft and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Bangkok Dusit
The main advantage of trading using opposite Silicon Craft and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Bangkok Dusit 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 Dusit will offset losses from the drop in Bangkok Dusit's long position.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
| Bangkok Dusit vs. AP Public | Bangkok Dusit vs. Advanced Information Technology | Bangkok Dusit vs. AJ Plast Public | Bangkok Dusit vs. Berli Jucker 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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