Correlation Between Saha Pathanapibul and Bangkok Expressway
Can any of the company-specific risk be diversified away by investing in both Saha Pathanapibul and Bangkok Expressway 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 Saha Pathanapibul and Bangkok Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saha Pathanapibul Public and Bangkok Expressway and, you can compare the effects of market volatilities on Saha Pathanapibul and Bangkok Expressway 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 Saha Pathanapibul with a short position of Bangkok Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saha Pathanapibul and Bangkok Expressway.
Diversification Opportunities for Saha Pathanapibul and Bangkok Expressway
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saha and Bangkok is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathanapibul Public and Bangkok Expressway and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway and and Saha Pathanapibul 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 Saha Pathanapibul Public are associated (or correlated) with Bangkok Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway and has no effect on the direction of Saha Pathanapibul i.e., Saha Pathanapibul and Bangkok Expressway go up and down completely randomly.
Pair Corralation between Saha Pathanapibul and Bangkok Expressway
Assuming the 90 days trading horizon Saha Pathanapibul Public is expected to generate 0.83 times more return on investment than Bangkok Expressway. However, Saha Pathanapibul Public is 1.21 times less risky than Bangkok Expressway. It trades about 0.24 of its potential returns per unit of risk. Bangkok Expressway and is currently generating about -0.33 per unit of risk. If you would invest 5,674 in Saha Pathanapibul Public on August 31, 2024 and sell it today you would earn a total of 226.00 from holding Saha Pathanapibul Public or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saha Pathanapibul Public vs. Bangkok Expressway and
Performance |
| Timeline |
| Saha Pathanapibul Public |
| Bangkok Expressway and |
Saha Pathanapibul and Bangkok Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saha Pathanapibul and Bangkok Expressway
The main advantage of trading using opposite Saha Pathanapibul and Bangkok Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saha Pathanapibul position performs unexpectedly, Bangkok Expressway 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 Expressway will offset losses from the drop in Bangkok Expressway's long position.| Saha Pathanapibul vs. TRC Construction Public | Saha Pathanapibul vs. Bangkok Expressway and | Saha Pathanapibul vs. Lohakit Metal Public | Saha Pathanapibul vs. Gunkul Engineering Public |
| Bangkok Expressway vs. BTS Group Holdings | Bangkok Expressway vs. Bangkok Dusit Medical | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. CP ALL 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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