Correlation Between True Public and BANPU POWER
Can any of the company-specific risk be diversified away by investing in both True Public and BANPU POWER 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 True Public and BANPU POWER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between True Public and BANPU POWER, you can compare the effects of market volatilities on True Public and BANPU POWER 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 True Public with a short position of BANPU POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Public and BANPU POWER.
Diversification Opportunities for True Public and BANPU POWER
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between True and BANPU is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding True Public and BANPU POWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANPU POWER and True Public 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 True Public are associated (or correlated) with BANPU POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANPU POWER has no effect on the direction of True Public i.e., True Public and BANPU POWER go up and down completely randomly.
Pair Corralation between True Public and BANPU POWER
Assuming the 90 days trading horizon True Public is expected to generate 3.89 times more return on investment than BANPU POWER. However, True Public is 3.89 times more volatile than BANPU POWER. It trades about 0.09 of its potential returns per unit of risk. BANPU POWER is currently generating about -0.06 per unit of risk. If you would invest 687.00 in True Public on September 13, 2024 and sell it today you would earn a total of 503.00 from holding True Public or generate 73.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
True Public vs. BANPU POWER
Performance |
| Timeline |
| True Public |
| BANPU POWER |
True Public and BANPU POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Public and BANPU POWER
The main advantage of trading using opposite True Public and BANPU POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Public position performs unexpectedly, BANPU POWER 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 BANPU POWER will offset losses from the drop in BANPU POWER's long position.| True Public vs. Hana Microelectronics Public | True Public vs. Ekachai Medical Care | True Public vs. Megachem Public | True Public vs. Diamond Building Products |
| BANPU POWER vs. Super Energy | BANPU POWER vs. The Erawan Group | BANPU POWER vs. XSpring Capital Public | BANPU POWER vs. Ditto 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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