Correlation Between Thai Coating and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Thai Coating and BPS TECHNOLOGY 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 Thai Coating and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Coating Industrial and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Thai Coating and BPS TECHNOLOGY 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 Thai Coating with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Coating and BPS TECHNOLOGY.
Diversification Opportunities for Thai Coating and BPS TECHNOLOGY
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and BPS is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thai Coating Industrial and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Thai Coating 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 Thai Coating Industrial are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Thai Coating i.e., Thai Coating and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Thai Coating and BPS TECHNOLOGY
Assuming the 90 days trading horizon Thai Coating Industrial is expected to generate 1.24 times more return on investment than BPS TECHNOLOGY. However, Thai Coating is 1.24 times more volatile than BPS TECHNOLOGY PUBLIC. It trades about 0.05 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.05 per unit of risk. If you would invest 2,500 in Thai Coating Industrial on September 2, 2024 and sell it today you would earn a total of 250.00 from holding Thai Coating Industrial or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Thai Coating Industrial vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Thai Coating Industrial |
| BPS TECHNOLOGY PUBLIC |
Thai Coating and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Coating and BPS TECHNOLOGY
The main advantage of trading using opposite Thai Coating and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Coating position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Thai Coating vs. AAPICO Hitech Public | Thai Coating vs. AP Public | Thai Coating vs. Aikchol Hospital Public | Thai Coating vs. Bank of Ayudhya |
| BPS TECHNOLOGY vs. AP Public | BPS TECHNOLOGY vs. TRC Construction Public | BPS TECHNOLOGY vs. Bangkok Expressway and | BPS TECHNOLOGY vs. Lohakit Metal 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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