Correlation Between Bualuang Office and Forth Public

Can any of the company-specific risk be diversified away by investing in both Bualuang Office and Forth Public 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 Bualuang Office and Forth Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bualuang Office Leasehold and Forth Public, you can compare the effects of market volatilities on Bualuang Office and Forth Public 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 Bualuang Office with a short position of Forth Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bualuang Office and Forth Public.

Diversification Opportunities for Bualuang Office and Forth Public

0.86

Correlation Coefficient

Bualuang Office  Forth Public

Very poor diversification

The 3 months correlation between Bualuang and Forth is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bualuang Office Leasehold and Forth Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth Public and Bualuang Office 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 Bualuang Office Leasehold are associated (or correlated) with Forth Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Public has no effect on the direction of Bualuang Office i.e., Bualuang Office and Forth Public go up and down completely randomly.

Pair Corralation between Bualuang Office and Forth Public

Assuming the 90 days trading horizon Bualuang Office Leasehold is expected to generate 0.36 times more return on investment than Forth Public. However, Bualuang Office Leasehold is 2.8 times less risky than Forth Public. It trades about -0.1 of its potential returns per unit of risk. Forth Public is currently generating about -0.24 per unit of risk. If you would invest  452.00  in Bualuang Office Leasehold on April 24, 2025 and sell it today you would lose (18.00) from holding Bualuang Office Leasehold or give up 3.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Bualuang Office Leasehold  vs.  Forth Public

Bualuang Office Leasehold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bualuang Office Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Bualuang Office is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Forth Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Forth Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bualuang Office and Forth Public

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

The idea behind Bualuang Office Leasehold and Forth Public 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.