Correlation Between Bangkok Dusit and Srivichaivejvivat

Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Srivichaivejvivat 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 Srivichaivejvivat 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 Srivichaivejvivat Public, you can compare the effects of market volatilities on Bangkok Dusit and Srivichaivejvivat 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 Srivichaivejvivat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Srivichaivejvivat.

Diversification Opportunities for Bangkok Dusit and Srivichaivejvivat

0.46

Correlation Coefficient

Bangkok Dusit  Srivichaivejvivat

Very weak diversification

The 3 months correlation between Bangkok and Srivichaivejvivat is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Srivichaivejvivat Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srivichaivejvivat Public 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 Srivichaivejvivat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srivichaivejvivat Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Srivichaivejvivat go up and down completely randomly.

Pair Corralation between Bangkok Dusit and Srivichaivejvivat

Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Srivichaivejvivat. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 1.53 times less risky than Srivichaivejvivat. The stock trades about -0.23 of its potential returns per unit of risk. The Srivichaivejvivat Public is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  905.00  in Srivichaivejvivat Public on October 10, 2024 and sell it today you would lose (85.00) from holding Srivichaivejvivat Public or give up 9.39% of portfolio value over 90 days.

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

Bangkok Dusit Medical  vs.  Srivichaivejvivat Public

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 conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Srivichaivejvivat Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Srivichaivejvivat Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Bangkok Dusit and Srivichaivejvivat

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

The idea behind Bangkok Dusit Medical and Srivichaivejvivat 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.