Correlation Between AM EAGLE and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and Bangkok 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 AM EAGLE and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and Bangkok Bank Public, you can compare the effects of market volatilities on AM EAGLE and Bangkok 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 AM EAGLE with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and Bangkok Bank.
Diversification Opportunities for AM EAGLE and Bangkok Bank
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AFG and Bangkok is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and AM EAGLE 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 AM EAGLE OUTFITTERS are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of AM EAGLE i.e., AM EAGLE and Bangkok Bank go up and down completely randomly.
Pair Corralation between AM EAGLE and Bangkok Bank
Assuming the 90 days trading horizon AM EAGLE OUTFITTERS is expected to under-perform the Bangkok Bank. In addition to that, AM EAGLE is 1.22 times more volatile than Bangkok Bank Public. It trades about -0.06 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.09 per unit of volatility. If you would invest 400.00 in Bangkok Bank Public on October 9, 2024 and sell it today you would earn a total of 10.00 from holding Bangkok Bank Public or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. Bangkok Bank Public
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| Bangkok Bank Public |
AM EAGLE and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and Bangkok Bank
The main advantage of trading using opposite AM EAGLE and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, Bangkok 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| AM EAGLE vs. SCANSOURCE | AM EAGLE vs. United States Steel | AM EAGLE vs. DONGJIANG ENVIRONMENTAL H | AM EAGLE vs. PT Steel Pipe |
| Bangkok Bank vs. Sumitomo Rubber Industries | Bangkok Bank vs. Sanyo Chemical Industries | Bangkok Bank vs. SEKISUI CHEMICAL | Bangkok Bank vs. GOODYEAR T RUBBER |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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