Correlation Between Saksiam Leasing and Bangkok Dusit

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

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

Diversification Opportunities for Saksiam Leasing and Bangkok Dusit

0.0

Correlation Coefficient

Saksiam Leasing  Bangkok Dusit

Pay attention - limited upside

The 3 months correlation between Saksiam and Bangkok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public 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 Saksiam Leasing 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 Saksiam Leasing Public 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 Saksiam Leasing i.e., Saksiam Leasing and Bangkok Dusit go up and down completely randomly.

Pair Corralation between Saksiam Leasing and Bangkok Dusit

Assuming the 90 days trading horizon Saksiam Leasing Public is expected to generate 2.3 times more return on investment than Bangkok Dusit. However, Saksiam Leasing is 2.3 times more volatile than Bangkok Dusit Medical. It trades about -0.04 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.22 per unit of risk. If you would invest  560.00  in Saksiam Leasing Public on September 15, 2024 and sell it today you would lose (60.00) from holding Saksiam Leasing Public or give up 10.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Saksiam Leasing Public  vs.  Bangkok Dusit Medical

Saksiam Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saksiam Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional 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 conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Saksiam Leasing and Bangkok Dusit

The main advantage of trading using opposite Saksiam Leasing and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing 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 Saksiam Leasing Public 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.