Correlation Between Superior Plus and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both Superior Plus and TMBThanachart Bank 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 Superior Plus and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and TMBThanachart Bank Public, you can compare the effects of market volatilities on Superior Plus and TMBThanachart Bank 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 Superior Plus with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and TMBThanachart Bank.
Diversification Opportunities for Superior Plus and TMBThanachart Bank
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Superior and TMBThanachart is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and TMBThanachart Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMBThanachart Bank Public and Superior Plus 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 Superior Plus Corp are associated (or correlated) with TMBThanachart Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMBThanachart Bank Public has no effect on the direction of Superior Plus i.e., Superior Plus and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between Superior Plus and TMBThanachart Bank
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.73 times more return on investment than TMBThanachart Bank. However, Superior Plus Corp is 1.37 times less risky than TMBThanachart Bank. It trades about 0.06 of its potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.03 per unit of risk. If you would invest 415.00 in Superior Plus Corp on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Superior Plus Corp or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Superior Plus Corp vs. TMBThanachart Bank Public
Performance |
| Timeline |
| Superior Plus Corp |
| TMBThanachart Bank Public |
Superior Plus and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and TMBThanachart Bank
The main advantage of trading using opposite Superior Plus and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, TMBThanachart Bank 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 TMBThanachart Bank will offset losses from the drop in TMBThanachart Bank's long position.| Superior Plus vs. LPKF Laser Electronics | Superior Plus vs. UNITED RENTALS | Superior Plus vs. GRENKELEASING Dusseldorf | Superior Plus vs. TT Electronics PLC |
| TMBThanachart Bank vs. KENEDIX OFFICE INV | TMBThanachart Bank vs. Highlight Communications AG | TMBThanachart Bank vs. Casio Computer CoLtd | TMBThanachart Bank vs. T MOBILE US |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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