Correlation Between Bangkok Dusit and Bangkok Life

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

By analyzing existing cross correlation between Bangkok Dusit Medical and Bangkok Life Assurance, you can compare the effects of market volatilities on Bangkok Dusit and Bangkok Life 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 Bangkok Dusit with a short position of Bangkok Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Bangkok Life.

Diversification Opportunities for Bangkok Dusit and Bangkok Life

0.0

Correlation Coefficient

Bangkok Dusit  Bangkok Life

Pay attention - limited upside

The 3 months correlation between Bangkok and Bangkok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Bangkok Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Life Assurance and Bangkok Dusit 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 Bangkok Dusit Medical are associated (or correlated) with Bangkok Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Life Assurance has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Bangkok Life go up and down completely randomly.

Pair Corralation between Bangkok Dusit and Bangkok Life

If you would invest  0.00  in Bangkok Life Assurance on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Bangkok Life Assurance or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bangkok Dusit Medical  vs.  Bangkok Life Assurance

Bangkok Dusit Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Dusit Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Bangkok Dusit is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Bangkok Life Assurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Life Assurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Bangkok Life is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bangkok Dusit and Bangkok Life

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

The idea behind Bangkok Dusit Medical and Bangkok Life Assurance 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.