Correlation Between Turnkey Communication and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Turnkey Communication 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 Turnkey Communication and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turnkey Communication Services and Bangkok Dusit Medical, you can compare the effects of market volatilities on Turnkey Communication 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 Turnkey Communication with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turnkey Communication and Bangkok Dusit.
Diversification Opportunities for Turnkey Communication and Bangkok Dusit
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Turnkey and Bangkok is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services 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 Turnkey Communication 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 Turnkey Communication Services 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 Turnkey Communication i.e., Turnkey Communication and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Turnkey Communication and Bangkok Dusit
Assuming the 90 days trading horizon Turnkey Communication Services is expected to under-perform the Bangkok Dusit. In addition to that, Turnkey Communication is 5.13 times more volatile than Bangkok Dusit Medical. It trades about -0.31 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.22 per unit of volatility. If you would invest 2,399 in Bangkok Dusit Medical on November 27, 2024 and sell it today you would lose (59.00) from holding Bangkok Dusit Medical or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turnkey Communication Services vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Turnkey Communication |
| Bangkok Dusit Medical |
Turnkey Communication and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turnkey Communication and Bangkok Dusit
The main advantage of trading using opposite Turnkey Communication and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turnkey Communication 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.| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI Public |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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