Correlation Between Ai Energy and Bangchak Public

Can any of the company-specific risk be diversified away by investing in both Ai Energy and Bangchak Public 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 Ai Energy and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ai Energy Public and Bangchak Public, you can compare the effects of market volatilities on Ai Energy and Bangchak Public 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 Ai Energy with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ai Energy and Bangchak Public.

Diversification Opportunities for Ai Energy and Bangchak Public

0.55

Correlation Coefficient

Ai Energy  Bangchak Public

Very weak diversification

The 3 months correlation between AIE and Bangchak is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ai Energy Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and Ai Energy 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 Ai Energy Public are associated (or correlated) with Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of Ai Energy i.e., Ai Energy and Bangchak Public go up and down completely randomly.

Pair Corralation between Ai Energy and Bangchak Public

Assuming the 90 days trading horizon Ai Energy Public is expected to generate 3.26 times more return on investment than Bangchak Public. However, Ai Energy is 3.26 times more volatile than Bangchak Public. It trades about 0.13 of its potential returns per unit of risk. Bangchak Public is currently generating about 0.16 per unit of risk. If you would invest  92.00  in Ai Energy Public on December 20, 2024 and sell it today you would earn a total of  51.00  from holding Ai Energy Public or generate 55.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ai Energy Public  vs.  Bangchak Public

Ai Energy Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ai Energy Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Ai Energy disclosed solid returns over the last few months and may actually be approaching a breakup point.

Bangchak Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bangchak Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Bangchak Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ai Energy and Bangchak Public

The main advantage of trading using opposite Ai Energy and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ai Energy position performs unexpectedly, Bangchak Public 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.

The idea behind Ai Energy Public and Bangchak Public 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.