Correlation Between Taokaenoi Food and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Taokaenoi Food 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 Taokaenoi Food and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taokaenoi Food Marketing and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Taokaenoi Food 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 Taokaenoi Food with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taokaenoi Food and BPS TECHNOLOGY.
Diversification Opportunities for Taokaenoi Food and BPS TECHNOLOGY
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Taokaenoi and BPS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Taokaenoi Food Marketing 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 Taokaenoi Food 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 Taokaenoi Food Marketing 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 Taokaenoi Food i.e., Taokaenoi Food and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Taokaenoi Food and BPS TECHNOLOGY
Assuming the 90 days trading horizon Taokaenoi Food Marketing is expected to under-perform the BPS TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Taokaenoi Food Marketing is 3.5 times less risky than BPS TECHNOLOGY. The stock trades about -0.13 of its potential returns per unit of risk. The BPS TECHNOLOGY PUBLIC is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 52.00 in BPS TECHNOLOGY PUBLIC on October 9, 2024 and sell it today you would lose (2.00) from holding BPS TECHNOLOGY PUBLIC or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taokaenoi Food Marketing vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Taokaenoi Food Marketing |
| BPS TECHNOLOGY PUBLIC |
Taokaenoi Food and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taokaenoi Food and BPS TECHNOLOGY
The main advantage of trading using opposite Taokaenoi Food and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taokaenoi Food 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.| Taokaenoi Food vs. CP ALL Public | Taokaenoi Food vs. Carabao Group Public | Taokaenoi Food vs. Thai Union Group | Taokaenoi Food vs. Minor International Public |
| BPS TECHNOLOGY vs. LH Hotel Leasehold | BPS TECHNOLOGY vs. Inoue Rubber Public | BPS TECHNOLOGY vs. Saksiam Leasing Public | BPS TECHNOLOGY vs. CHAOSUA FOODS INDUSTRY |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |