Correlation Between Samchai Steel and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both Samchai Steel and Bangsaphan Barmill 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 Samchai Steel and Bangsaphan Barmill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samchai Steel Industries and Bangsaphan Barmill Public, you can compare the effects of market volatilities on Samchai Steel and Bangsaphan Barmill 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 Samchai Steel with a short position of Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samchai Steel and Bangsaphan Barmill.
Diversification Opportunities for Samchai Steel and Bangsaphan Barmill
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samchai and Bangsaphan is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samchai Steel Industries and Bangsaphan Barmill Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangsaphan Barmill Public and Samchai Steel 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 Samchai Steel Industries are associated (or correlated) with Bangsaphan Barmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangsaphan Barmill Public has no effect on the direction of Samchai Steel i.e., Samchai Steel and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between Samchai Steel and Bangsaphan Barmill
If you would invest 71.00 in Bangsaphan Barmill Public on September 16, 2024 and sell it today you would earn a total of 1.00 from holding Bangsaphan Barmill Public or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Samchai Steel Industries vs. Bangsaphan Barmill Public
Performance |
Timeline |
Samchai Steel Industries |
Bangsaphan Barmill Public |
Samchai Steel and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samchai Steel and Bangsaphan Barmill
The main advantage of trading using opposite Samchai Steel and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samchai Steel position performs unexpectedly, Bangsaphan Barmill 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 Bangsaphan Barmill will offset losses from the drop in Bangsaphan Barmill's long position.Samchai Steel vs. Bangsaphan Barmill Public | Samchai Steel vs. POSCO Thainox Public | Samchai Steel vs. Permsin Steel Works | Samchai Steel vs. Pacific Pipe Public |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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