Correlation Between Better World and Begistics Public
Can any of the company-specific risk be diversified away by investing in both Better World and Begistics 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 Better World and Begistics Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better World Green and Begistics Public, you can compare the effects of market volatilities on Better World and Begistics 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 Better World with a short position of Begistics Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better World and Begistics Public.
Diversification Opportunities for Better World and Begistics Public
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Better and Begistics is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Better World Green and Begistics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Begistics Public and Better World 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 Better World Green are associated (or correlated) with Begistics Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Begistics Public has no effect on the direction of Better World i.e., Better World and Begistics Public go up and down completely randomly.
Pair Corralation between Better World and Begistics Public
Assuming the 90 days trading horizon Better World Green is expected to generate 0.54 times more return on investment than Begistics Public. However, Better World Green is 1.84 times less risky than Begistics Public. It trades about 0.04 of its potential returns per unit of risk. Begistics Public is currently generating about 0.02 per unit of risk. If you would invest 36.00 in Better World Green on September 26, 2024 and sell it today you would earn a total of 3.00 from holding Better World Green or generate 8.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Better World Green vs. Begistics Public
Performance |
Timeline |
Better World Green |
Begistics Public |
Better World and Begistics Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Better World and Begistics Public
The main advantage of trading using opposite Better World and Begistics Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better World position performs unexpectedly, Begistics 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 Begistics Public will offset losses from the drop in Begistics Public's long position.Better World vs. Land and Houses | Better World vs. CH Karnchang Public | Better World vs. Krung Thai Bank | Better World vs. Bangkok Bank Public |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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