Correlation Between Bank of Ayudhya and DOHOME
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By analyzing existing cross correlation between Bank of Ayudhya and DOHOME, you can compare the effects of market volatilities on Bank of Ayudhya and DOHOME 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 Bank of Ayudhya with a short position of DOHOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Ayudhya and DOHOME.
Diversification Opportunities for Bank of Ayudhya and DOHOME
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and DOHOME is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ayudhya and DOHOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOHOME and Bank of Ayudhya 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 Bank of Ayudhya are associated (or correlated) with DOHOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOHOME has no effect on the direction of Bank of Ayudhya i.e., Bank of Ayudhya and DOHOME go up and down completely randomly.
Pair Corralation between Bank of Ayudhya and DOHOME
Assuming the 90 days trading horizon Bank of Ayudhya is expected to generate 0.53 times more return on investment than DOHOME. However, Bank of Ayudhya is 1.87 times less risky than DOHOME. It trades about 0.0 of its potential returns per unit of risk. DOHOME is currently generating about -0.05 per unit of risk. If you would invest 2,567 in Bank of Ayudhya on August 25, 2024 and sell it today you would lose (67.00) from holding Bank of Ayudhya or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Ayudhya vs. DOHOME
Performance |
| Timeline |
| Bank of Ayudhya |
| DOHOME |
Bank of Ayudhya and DOHOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Ayudhya and DOHOME
The main advantage of trading using opposite Bank of Ayudhya and DOHOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Ayudhya position performs unexpectedly, DOHOME 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 DOHOME will offset losses from the drop in DOHOME's long position.| Bank of Ayudhya vs. Thai Energy Storage | Bank of Ayudhya vs. Royal Orchid Hotel | Bank of Ayudhya vs. Grand Canal Land | Bank of Ayudhya vs. PRG Public |
| DOHOME vs. Bumrungrad Hospital Public | DOHOME vs. Thai Rubber Latex | DOHOME vs. Food Moments PCL | DOHOME vs. NSL Foods 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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