Correlation Between Gen Digital and Bangkok Dusit

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

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

Diversification Opportunities for Gen Digital and Bangkok Dusit

-0.58

Correlation Coefficient

Gen Digital  Bangkok Dusit

Excellent diversification

The 3 months correlation between Gen and Bangkok is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gen Digital and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Gen Digital 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 Gen Digital are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Gen Digital i.e., Gen Digital and Bangkok Dusit go up and down completely randomly.

Pair Corralation between Gen Digital and Bangkok Dusit

If you would invest  73.00  in Bangkok Dusit Medical on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Bangkok Dusit Medical or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Gen Digital  vs.  Bangkok Dusit Medical

Gen Digital

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gen Digital are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Gen Digital is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Bangkok Dusit Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Dusit Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Bangkok Dusit is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Gen Digital and Bangkok Dusit

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

The idea behind Gen Digital and Bangkok Dusit Medical 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.