Correlation Between IRPC Public and Bangchak Public

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

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

Diversification Opportunities for IRPC Public and Bangchak Public

-0.79

Correlation Coefficient

IRPC Public  Bangchak Public

Pay attention - limited upside

The 3 months correlation between IRPC and Bangchak is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding IRPC Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and IRPC Public 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 IRPC 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 IRPC Public i.e., IRPC Public and Bangchak Public go up and down completely randomly.

Pair Corralation between IRPC Public and Bangchak Public

Assuming the 90 days trading horizon IRPC Public is expected to under-perform the Bangchak Public. In addition to that, IRPC Public is 1.57 times more volatile than Bangchak Public. It trades about -0.13 of its total potential returns per unit of risk. Bangchak Public is currently generating about 0.06 per unit of volatility. If you would invest  3,555  in Bangchak Public on December 30, 2024 and sell it today you would earn a total of  220.00  from holding Bangchak Public or generate 6.19% return on investment over 90 days.

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

IRPC Public  vs.  Bangchak Public

IRPC Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days IRPC Public 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 forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bangchak Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bangchak Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Bangchak Public may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IRPC Public and Bangchak Public

The main advantage of trading using opposite IRPC Public and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRPC Public 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 IRPC 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.

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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.