Correlation Between Asia Sermkij and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both Asia Sermkij 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 Asia Sermkij and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Sermkij Leasing and TMBThanachart Bank Public, you can compare the effects of market volatilities on Asia Sermkij 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 Asia Sermkij with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Sermkij and TMBThanachart Bank.
Diversification Opportunities for Asia Sermkij and TMBThanachart Bank
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asia and TMBThanachart is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Asia Sermkij Leasing 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 Asia Sermkij 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 Asia Sermkij Leasing 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 Asia Sermkij i.e., Asia Sermkij and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between Asia Sermkij and TMBThanachart Bank
Assuming the 90 days trading horizon Asia Sermkij Leasing is expected to under-perform the TMBThanachart Bank. In addition to that, Asia Sermkij is 2.31 times more volatile than TMBThanachart Bank Public. It trades about -0.32 of its total potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.09 per unit of volatility. If you would invest 178.00 in TMBThanachart Bank Public on August 28, 2024 and sell it today you would earn a total of 3.00 from holding TMBThanachart Bank Public or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asia Sermkij Leasing vs. TMBThanachart Bank Public
Performance |
| Timeline |
| Asia Sermkij Leasing |
| TMBThanachart Bank Public |
Asia Sermkij and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Sermkij and TMBThanachart Bank
The main advantage of trading using opposite Asia Sermkij and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Sermkij 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.| Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group Public |
| TMBThanachart Bank vs. TISCO Financial Group | TMBThanachart Bank vs. Krung Thai Bank | TMBThanachart Bank vs. Kasikornbank Public | TMBThanachart Bank vs. SCB X 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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