Correlation Between Trinity Industries and Bangkok Expressway

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

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

Diversification Opportunities for Trinity Industries and Bangkok Expressway

0.0

Correlation Coefficient

Trinity Industries  Bangkok Expressway

Pay attention - limited upside

The 3 months correlation between Trinity and Bangkok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Industries and Bangkok Expressway And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway And and Trinity Industries 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 Trinity Industries are associated (or correlated) with Bangkok Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway And has no effect on the direction of Trinity Industries i.e., Trinity Industries and Bangkok Expressway go up and down completely randomly.

Pair Corralation between Trinity Industries and Bangkok Expressway

If you would invest  30.00  in Bangkok Expressway And on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Bangkok Expressway And or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Trinity Industries  vs.  Bangkok Expressway And

Trinity Industries

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Trinity Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Trinity Industries is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Bangkok Expressway And

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Trinity Industries and Bangkok Expressway

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

The idea behind Trinity Industries and Bangkok Expressway And 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.