Correlation Between Bangkok Insurance and Union Mosaic
Can any of the company-specific risk be diversified away by investing in both Bangkok Insurance and Union Mosaic 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 Insurance and Union Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Insurance Public and The Union Mosaic, you can compare the effects of market volatilities on Bangkok Insurance and Union Mosaic 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 Insurance with a short position of Union Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Insurance and Union Mosaic.
Diversification Opportunities for Bangkok Insurance and Union Mosaic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Union is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Insurance Public and The Union Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Mosaic and Bangkok Insurance 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 Insurance Public are associated (or correlated) with Union Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Mosaic has no effect on the direction of Bangkok Insurance i.e., Bangkok Insurance and Union Mosaic go up and down completely randomly.
Pair Corralation between Bangkok Insurance and Union Mosaic
If you would invest (100.00) in The Union Mosaic on February 3, 2024 and sell it today you would earn a total of 100.00 from holding The Union Mosaic or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bangkok Insurance Public vs. The Union Mosaic
Performance |
Timeline |
Bangkok Insurance Public |
Union Mosaic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bangkok Insurance and Union Mosaic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangkok Insurance and Union Mosaic
The main advantage of trading using opposite Bangkok Insurance and Union Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Insurance position performs unexpectedly, Union Mosaic 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 Union Mosaic will offset losses from the drop in Union Mosaic's long position.The idea behind Bangkok Insurance Public and The Union Mosaic 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.Union Mosaic vs. Vanachai Group Public | Union Mosaic vs. Univentures Public | Union Mosaic vs. Tycoons Worldwide Group | Union Mosaic vs. Thoresen Thai Agencies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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