Correlation Between Bangkok Sheet and Turnkey Communication

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

By analyzing existing cross correlation between Bangkok Sheet Metal and Turnkey Communication Services, you can compare the effects of market volatilities on Bangkok Sheet and Turnkey Communication 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 Sheet with a short position of Turnkey Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Turnkey Communication.

Diversification Opportunities for Bangkok Sheet and Turnkey Communication

0.3

Correlation Coefficient

Bangkok Sheet  Turnkey Communication

Weak diversification

The 3 months correlation between Bangkok and Turnkey is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Turnkey Communication Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turnkey Communication and Bangkok Sheet 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 Sheet Metal are associated (or correlated) with Turnkey Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turnkey Communication has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and Turnkey Communication go up and down completely randomly.

Pair Corralation between Bangkok Sheet and Turnkey Communication

Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 28.05 times more return on investment than Turnkey Communication. However, Bangkok Sheet is 28.05 times more volatile than Turnkey Communication Services. It trades about 0.08 of its potential returns per unit of risk. Turnkey Communication Services is currently generating about 0.07 per unit of risk. If you would invest  254.00  in Bangkok Sheet Metal on October 26, 2024 and sell it today you would earn a total of  42.00  from holding Bangkok Sheet Metal or generate 16.54% return on investment over 90 days.

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

Bangkok Sheet Metal  vs.  Turnkey Communication Services

Bangkok Sheet Metal

Risk-Adjusted Performance

0 of 100

Very Weak

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

Turnkey Communication

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turnkey Communication Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators 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.

Pair Trading with Bangkok Sheet and Turnkey Communication

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

The idea behind Bangkok Sheet Metal and Turnkey Communication Services 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.