Correlation Between BTS Group and Asset World
Can any of the company-specific risk be diversified away by investing in both BTS Group and Asset World 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 BTS Group and Asset World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and Asset World Corp, you can compare the effects of market volatilities on BTS Group and Asset World 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 BTS Group with a short position of Asset World. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Asset World.
Diversification Opportunities for BTS Group and Asset World
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTS and Asset is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Asset World Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset World Corp and BTS Group 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 BTS Group Holdings are associated (or correlated) with Asset World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset World Corp has no effect on the direction of BTS Group i.e., BTS Group and Asset World go up and down completely randomly.
Pair Corralation between BTS Group and Asset World
Assuming the 90 days trading horizon BTS Group Holdings is expected to under-perform the Asset World. But the stock apears to be less risky and, when comparing its historical volatility, BTS Group Holdings is 1.14 times less risky than Asset World. The stock trades about -0.22 of its potential returns per unit of risk. The Asset World Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 213.00 in Asset World Corp on April 23, 2025 and sell it today you would lose (5.00) from holding Asset World Corp or give up 2.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.31% |
Values | Daily Returns |
BTS Group Holdings vs. Asset World Corp
Performance |
Timeline |
BTS Group Holdings |
Asset World Corp |
BTS Group and Asset World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTS Group and Asset World
The main advantage of trading using opposite BTS Group and Asset World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Asset World 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 Asset World will offset losses from the drop in Asset World's long position.BTS Group vs. Bangkok Expressway and | BTS Group vs. CP ALL Public | BTS Group vs. Airports of Thailand | BTS Group vs. Bangkok Dusit Medical |
Asset World vs. The Erawan Group | Asset World vs. The Erawan Group | Asset World vs. Dusit Thani Public | Asset World vs. Shangri La Hotel Public |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |