Correlation Between GAMING FAC and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and TMBThanachart Bank Public, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and TMBThanachart Bank.
Diversification Opportunities for GAMING FAC and TMBThanachart Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMING and TMBThanachart is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA 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 GAMING FAC 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 GAMING FAC SA 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 GAMING FAC i.e., GAMING FAC and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between GAMING FAC and TMBThanachart Bank
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the TMBThanachart Bank. In addition to that, GAMING FAC is 3.11 times more volatile than TMBThanachart Bank Public. It trades about -0.07 of its total potential returns per unit of risk. TMBThanachart Bank Public is currently generating about -0.18 per unit of volatility. If you would invest 5.25 in TMBThanachart Bank Public on August 29, 2024 and sell it today you would lose (0.50) from holding TMBThanachart Bank Public or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
GAMING FAC SA vs. TMBThanachart Bank Public
Performance |
| Timeline |
| GAMING FAC SA |
| TMBThanachart Bank Public |
GAMING FAC and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and TMBThanachart Bank
The main advantage of trading using opposite GAMING FAC and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.| GAMING FAC vs. Sea Limited | GAMING FAC vs. Superior Plus Corp | GAMING FAC vs. NMI Holdings | GAMING FAC vs. SIVERS SEMICONDUCTORS AB |
| TMBThanachart Bank vs. COSTCO WHOLESALE CDR | TMBThanachart Bank vs. FAST RETAIL ADR | TMBThanachart Bank vs. GAMING FAC SA | TMBThanachart Bank vs. MARKET VECTR RETAIL |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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