Correlation Between Bank of Ayudhya and Diamond Building
Can any of the company-specific risk be diversified away by investing in both Bank of Ayudhya and Diamond Building 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 Bank of Ayudhya and Diamond Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Ayudhya and Diamond Building Products, you can compare the effects of market volatilities on Bank of Ayudhya and Diamond Building 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 Diamond Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Ayudhya and Diamond Building.
Diversification Opportunities for Bank of Ayudhya and Diamond Building
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Diamond is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ayudhya and Diamond Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Building Products 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 Diamond Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Building Products has no effect on the direction of Bank of Ayudhya i.e., Bank of Ayudhya and Diamond Building go up and down completely randomly.
Pair Corralation between Bank of Ayudhya and Diamond Building
Assuming the 90 days trading horizon Bank of Ayudhya is expected to under-perform the Diamond Building. In addition to that, Bank of Ayudhya is 2.05 times more volatile than Diamond Building Products. It trades about -0.04 of its total potential returns per unit of risk. Diamond Building Products is currently generating about 0.02 per unit of volatility. If you would invest 736.00 in Diamond Building Products on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Diamond Building Products or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bank of Ayudhya vs. Diamond Building Products
Performance |
| Timeline |
| Bank of Ayudhya |
| Diamond Building Products |
Bank of Ayudhya and Diamond Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Ayudhya and Diamond Building
The main advantage of trading using opposite Bank of Ayudhya and Diamond Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Ayudhya position performs unexpectedly, Diamond Building 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 Diamond Building will offset losses from the drop in Diamond Building's long position.| Bank of Ayudhya vs. TISCO Financial Group | Bank of Ayudhya vs. SCB X Public | Bank of Ayudhya vs. Bangkok Bank Public |
| Diamond Building vs. AAPICO Hitech Public | Diamond Building vs. AP Public | Diamond Building vs. Aikchol Hospital Public | Diamond Building vs. Bank of Ayudhya |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |