Correlation Between Bank of Ayudhya and Supalai Public
Can any of the company-specific risk be diversified away by investing in both Bank of Ayudhya and Supalai Public 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 Supalai Public 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 Supalai Public, you can compare the effects of market volatilities on Bank of Ayudhya and Supalai Public 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 Supalai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Ayudhya and Supalai Public.
Diversification Opportunities for Bank of Ayudhya and Supalai Public
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Supalai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ayudhya and Supalai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supalai Public 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 Supalai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supalai Public has no effect on the direction of Bank of Ayudhya i.e., Bank of Ayudhya and Supalai Public go up and down completely randomly.
Pair Corralation between Bank of Ayudhya and Supalai Public
Assuming the 90 days trading horizon Bank of Ayudhya is expected to generate 0.37 times more return on investment than Supalai Public. However, Bank of Ayudhya is 2.72 times less risky than Supalai Public. It trades about -0.27 of its potential returns per unit of risk. Supalai Public is currently generating about -0.29 per unit of risk. If you would invest 2,460 in Bank of Ayudhya on November 3, 2024 and sell it today you would lose (80.00) from holding Bank of Ayudhya or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Ayudhya vs. Supalai Public
Performance |
| Timeline |
| Bank of Ayudhya |
| Supalai Public |
Bank of Ayudhya and Supalai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Ayudhya and Supalai Public
The main advantage of trading using opposite Bank of Ayudhya and Supalai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Ayudhya position performs unexpectedly, Supalai Public 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 Supalai Public will offset losses from the drop in Supalai Public's long position.| Bank of Ayudhya vs. Bangkok Bank Public | Bank of Ayudhya vs. Krung Thai Bank | Bank of Ayudhya vs. SCB X Public | Bank of Ayudhya vs. Kasikornbank Public |
| Supalai Public vs. Land and Houses | Supalai Public vs. AP Public | Supalai Public vs. Quality Houses Public | Supalai Public vs. Central Pattana 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |