Correlation Between BGrimm Power and Bangchak Public

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

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

Diversification Opportunities for BGrimm Power and Bangchak Public

-0.81

Correlation Coefficient

BGrimm Power  Bangchak Public

Pay attention - limited upside

The 3 months correlation between BGrimm and Bangchak is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding BGrimm Power Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and BGrimm Power 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 BGrimm Power 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 BGrimm Power i.e., BGrimm Power and Bangchak Public go up and down completely randomly.

Pair Corralation between BGrimm Power and Bangchak Public

Assuming the 90 days trading horizon BGrimm Power Public is expected to under-perform the Bangchak Public. In addition to that, BGrimm Power is 1.36 times more volatile than Bangchak Public. It trades about -0.43 of its total potential returns per unit of risk. Bangchak Public is currently generating about 0.12 per unit of volatility. If you would invest  3,500  in Bangchak Public on December 2, 2024 and sell it today you would earn a total of  350.00  from holding Bangchak Public or generate 10.0% return on investment over 90 days.

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

BGrimm Power Public  vs.  Bangchak Public

BGrimm Power Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days BGrimm Power Public 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 fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bangchak Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bangchak Public are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Bangchak Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BGrimm Power and Bangchak Public

The main advantage of trading using opposite BGrimm Power and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGrimm Power 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 BGrimm Power 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.