Correlation Between WIIK Public and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both WIIK Public 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 WIIK Public and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIIK Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on WIIK Public 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 WIIK Public with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIIK Public and Bangkok Dusit.
Diversification Opportunities for WIIK Public and Bangkok Dusit
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WIIK and Bangkok is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding WIIK Public 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 WIIK 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 WIIK Public 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 WIIK Public i.e., WIIK Public and Bangkok Dusit go up and down completely randomly.
Pair Corralation between WIIK Public and Bangkok Dusit
Assuming the 90 days trading horizon WIIK Public is expected to generate 34.78 times more return on investment than Bangkok Dusit. However, WIIK Public is 34.78 times more volatile than Bangkok Dusit Medical. It trades about 0.04 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.01 per unit of risk. If you would invest 164.00 in WIIK Public on September 12, 2024 and sell it today you would lose (51.00) from holding WIIK Public or give up 31.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIIK Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| WIIK Public |
| Bangkok Dusit Medical |
WIIK Public and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIIK Public and Bangkok Dusit
The main advantage of trading using opposite WIIK Public and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIIK Public 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.| WIIK Public vs. Tata Steel Public | WIIK Public vs. TTCL Public | WIIK Public vs. Thaifoods Group Public | WIIK Public vs. TMT Steel Public |
| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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