Correlation Between Bangkok Commercial and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Bangkok Commercial and NYSE Composite 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 Commercial and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Commercial Property and NYSE Composite, you can compare the effects of market volatilities on Bangkok Commercial and NYSE Composite 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 Commercial with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Commercial and NYSE Composite.
Diversification Opportunities for Bangkok Commercial and NYSE Composite
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and NYSE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Commercial Property and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Bangkok Commercial 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 Commercial Property are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Bangkok Commercial i.e., Bangkok Commercial and NYSE Composite go up and down completely randomly.
Pair Corralation between Bangkok Commercial and NYSE Composite
Assuming the 90 days trading horizon Bangkok Commercial Property is expected to generate 1.64 times more return on investment than NYSE Composite. However, Bangkok Commercial is 1.64 times more volatile than NYSE Composite. It trades about 0.1 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.18 per unit of risk. If you would invest 900.00 in Bangkok Commercial Property on January 30, 2024 and sell it today you would earn a total of 15.00 from holding Bangkok Commercial Property or generate 1.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 80.95% |
Values | Daily Returns |
Bangkok Commercial Property vs. NYSE Composite
Performance |
Timeline |
Bangkok Commercial and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Bangkok Commercial Property
Pair trading matchups for Bangkok Commercial
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Bangkok Commercial and NYSE Composite
The main advantage of trading using opposite Bangkok Commercial and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Commercial position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Bangkok Commercial vs. Impact Growth REIT | Bangkok Commercial vs. CPN Retail Growth | Bangkok Commercial vs. WHA Premium Growth | Bangkok Commercial vs. LH Shopping Centers |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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