Correlation Between Autocorp Holding and Bangkok Chain

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Can any of the company-specific risk be diversified away by investing in both Autocorp Holding and Bangkok Chain 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 Autocorp Holding and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autocorp Holding Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Autocorp Holding and Bangkok Chain 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 Autocorp Holding with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and Bangkok Chain.

Diversification Opportunities for Autocorp Holding and Bangkok Chain

AutocorpBangkokDiversified AwayAutocorpBangkokDiversified Away100%
0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Autocorp and Bangkok is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Autocorp Holding 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 Autocorp Holding Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and Bangkok Chain go up and down completely randomly.

Pair Corralation between Autocorp Holding and Bangkok Chain

Assuming the 90 days trading horizon Autocorp Holding Public is expected to generate 1.33 times more return on investment than Bangkok Chain. However, Autocorp Holding is 1.33 times more volatile than Bangkok Chain Hospital. It trades about 0.1 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.21 per unit of risk. If you would invest  80.00  in Autocorp Holding Public on November 19, 2024 and sell it today you would earn a total of  3.00  from holding Autocorp Holding Public or generate 3.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Autocorp Holding Public  vs.  Bangkok Chain Hospital

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-1001020
JavaScript chart by amCharts 3.21.15ACG BCH-R
       Timeline  
Autocorp Holding Public 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Autocorp Holding Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.80.850.90.95
Bangkok Chain Hospital 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Bangkok Chain Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb13.51414.51515.51616.51717.5

Autocorp Holding and Bangkok Chain Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.61-2.7-1.79-0.89-0.01340.791.62.43.21 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15ACG BCH-R
       Returns  

Pair Trading with Autocorp Holding and Bangkok Chain

The main advantage of trading using opposite Autocorp Holding and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, Bangkok Chain 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 Chain will offset losses from the drop in Bangkok Chain's long position.
The idea behind Autocorp Holding Public and Bangkok Chain Hospital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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