Correlation Between BTS Group and Asset World
Can any of the company-specific risk be diversified away by investing in both BTS Group and Asset World 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 BTS Group and Asset World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and Asset World Corp, you can compare the effects of market volatilities on BTS Group and Asset World 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 BTS Group with a short position of Asset World. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Asset World.
Diversification Opportunities for BTS Group and Asset World
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTS and Asset is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Asset World Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset World Corp and BTS Group 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 BTS Group Holdings are associated (or correlated) with Asset World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset World Corp has no effect on the direction of BTS Group i.e., BTS Group and Asset World go up and down completely randomly.
Pair Corralation between BTS Group and Asset World
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 1.48 times more return on investment than Asset World. However, BTS Group is 1.48 times more volatile than Asset World Corp. It trades about 0.04 of its potential returns per unit of risk. Asset World Corp is currently generating about -0.2 per unit of risk. If you would invest 555.00 in BTS Group Holdings on December 2, 2024 and sell it today you would earn a total of 25.00 from holding BTS Group Holdings or generate 4.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BTS Group Holdings vs. Asset World Corp
Performance |
Timeline |
BTS Group Holdings |
Asset World Corp |
BTS Group and Asset World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTS Group and Asset World
The main advantage of trading using opposite BTS Group and Asset World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Asset World 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 Asset World will offset losses from the drop in Asset World's long position.BTS Group vs. Bangkok Expressway and | BTS Group vs. CP ALL Public | BTS Group vs. Airports of Thailand | BTS Group vs. Bangkok Dusit Medical |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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