Correlation Between Bangkok Life and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Life and GFPT 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 Bangkok Life and GFPT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Life Assurance and GFPT Public, you can compare the effects of market volatilities on Bangkok Life and GFPT 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 Bangkok Life with a short position of GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Life and GFPT Public.
Diversification Opportunities for Bangkok Life and GFPT Public
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and GFPT is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Life Assurance and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT Public and Bangkok Life 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 Life Assurance are associated (or correlated) with GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Bangkok Life i.e., Bangkok Life and GFPT Public go up and down completely randomly.
Pair Corralation between Bangkok Life and GFPT Public
Assuming the 90 days trading horizon Bangkok Life Assurance is expected to generate 2.21 times more return on investment than GFPT Public. However, Bangkok Life is 2.21 times more volatile than GFPT Public. It trades about 0.05 of its potential returns per unit of risk. GFPT Public is currently generating about -0.13 per unit of risk. If you would invest 1,960 in Bangkok Life Assurance on September 13, 2024 and sell it today you would earn a total of 130.00 from holding Bangkok Life Assurance or generate 6.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Bangkok Life Assurance vs. GFPT Public
Performance |
Timeline |
Bangkok Life Assurance |
GFPT Public |
Bangkok Life and GFPT Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangkok Life and GFPT Public
The main advantage of trading using opposite Bangkok Life and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Life position performs unexpectedly, GFPT 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 GFPT Public will offset losses from the drop in GFPT Public's long position.Bangkok Life vs. Bangkok Bank Public | Bangkok Life vs. Indorama Ventures PCL | Bangkok Life vs. Bumrungrad Hospital Public | Bangkok Life 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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