Correlation Between Bluebik Group and II Group
Can any of the company-specific risk be diversified away by investing in both Bluebik Group and II Group 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 Bluebik Group and II Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluebik Group PCL and II Group Public, you can compare the effects of market volatilities on Bluebik Group and II Group 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 Bluebik Group with a short position of II Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluebik Group and II Group.
Diversification Opportunities for Bluebik Group and II Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluebik and IIG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bluebik Group PCL and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Bluebik Group 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 Bluebik Group PCL are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Bluebik Group i.e., Bluebik Group and II Group go up and down completely randomly.
Pair Corralation between Bluebik Group and II Group
Assuming the 90 days trading horizon Bluebik Group PCL is expected to generate 0.45 times more return on investment than II Group. However, Bluebik Group PCL is 2.2 times less risky than II Group. It trades about -0.12 of its potential returns per unit of risk. II Group Public is currently generating about -0.05 per unit of risk. If you would invest 4,250 in Bluebik Group PCL on September 25, 2024 and sell it today you would lose (250.00) from holding Bluebik Group PCL or give up 5.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bluebik Group PCL vs. II Group Public
Performance |
Timeline |
Bluebik Group PCL |
II Group Public |
Bluebik Group and II Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bluebik Group and II Group
The main advantage of trading using opposite Bluebik Group and II Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluebik Group position performs unexpectedly, II Group 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 II Group will offset losses from the drop in II Group's long position.Bluebik Group vs. Delta Electronics Public | Bluebik Group vs. Delta Electronics Public | Bluebik Group vs. Airports of Thailand | Bluebik Group vs. Airports of Thailand |
II Group vs. Delta Electronics Public | II Group vs. Delta Electronics Public | II Group vs. Airports of Thailand | II Group vs. Airports of Thailand |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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