Correlation Between Bhiraj Office and S Khonkaen

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

By analyzing existing cross correlation between Bhiraj Office Leasehold and S Khonkaen Foods, you can compare the effects of market volatilities on Bhiraj Office and S Khonkaen 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 Bhiraj Office with a short position of S Khonkaen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhiraj Office and S Khonkaen.

Diversification Opportunities for Bhiraj Office and S Khonkaen

-0.57

Correlation Coefficient

Bhiraj Office  S Khonkaen

Excellent diversification

The 3 months correlation between Bhiraj and SORKON is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bhiraj Office Leasehold and S Khonkaen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Khonkaen Foods and Bhiraj Office 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 Bhiraj Office Leasehold are associated (or correlated) with S Khonkaen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Khonkaen Foods has no effect on the direction of Bhiraj Office i.e., Bhiraj Office and S Khonkaen go up and down completely randomly.

Pair Corralation between Bhiraj Office and S Khonkaen

Assuming the 90 days trading horizon Bhiraj Office Leasehold is expected to under-perform the S Khonkaen. In addition to that, Bhiraj Office is 1.36 times more volatile than S Khonkaen Foods. It trades about -0.17 of its total potential returns per unit of risk. S Khonkaen Foods is currently generating about -0.04 per unit of volatility. If you would invest  430.00  in S Khonkaen Foods on October 10, 2024 and sell it today you would lose (2.00) from holding S Khonkaen Foods or give up 0.47% of portfolio value over 90 days.

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

Bhiraj Office Leasehold  vs.  S Khonkaen Foods

Bhiraj Office Leasehold

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

S Khonkaen Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days S Khonkaen Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, S Khonkaen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bhiraj Office and S Khonkaen

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

The idea behind Bhiraj Office Leasehold and S Khonkaen Foods 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.