Correlation Between Bangkok Expressway and B GRIMM

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

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

Diversification Opportunities for Bangkok Expressway and B GRIMM

0.8

Correlation Coefficient

Bangkok Expressway  B GRIMM

Very poor diversification

The 3 months correlation between Bangkok and BGRIM-R is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and B GRIMM POWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B GRIMM POWER and Bangkok Expressway 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 Expressway and are associated (or correlated) with B GRIMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B GRIMM POWER has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and B GRIMM go up and down completely randomly.

Pair Corralation between Bangkok Expressway and B GRIMM

Assuming the 90 days trading horizon Bangkok Expressway and is expected to generate 0.17 times more return on investment than B GRIMM. However, Bangkok Expressway and is 5.82 times less risky than B GRIMM. It trades about -0.13 of its potential returns per unit of risk. B GRIMM POWER is currently generating about -0.11 per unit of risk. If you would invest  800.00  in Bangkok Expressway and on September 13, 2024 and sell it today you would lose (60.00) from holding Bangkok Expressway and or give up 7.5% of portfolio value over 90 days.

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

Bangkok Expressway and  vs.  B GRIMM POWER

Bangkok Expressway and

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Expressway and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

B GRIMM POWER

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days B GRIMM POWER has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Bangkok Expressway and B GRIMM

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

The idea behind Bangkok Expressway and and B GRIMM POWER 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.