Correlation Between Bangkok Bank and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Bangkok Dusit 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 Bangkok Bank and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Bank Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on Bangkok Bank and Bangkok Dusit 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 Bangkok Bank with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Bangkok Dusit.
Diversification Opportunities for Bangkok Bank and Bangkok Dusit
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and Bangkok is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Bangkok Bank 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 Bangkok Bank Public are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Bangkok Bank and Bangkok Dusit
Assuming the 90 days trading horizon Bangkok Bank is expected to generate 123.8 times less return on investment than Bangkok Dusit. But when comparing it to its historical volatility, Bangkok Bank Public is 56.0 times less risky than Bangkok Dusit. It trades about 0.03 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Bangkok Dusit Medical on August 30, 2024 and sell it today you would lose (425.00) from holding Bangkok Dusit Medical or give up 14.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Bangkok Bank Public |
| Bangkok Dusit Medical |
Bangkok Bank and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Bangkok Dusit
The main advantage of trading using opposite Bangkok Bank and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Bangkok Dusit 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 Dusit will offset losses from the drop in Bangkok Dusit's long position.| Bangkok Bank vs. Karmarts Public | Bangkok Bank vs. Kang Yong Electric | Bangkok Bank vs. SCG PACKAGING PCL NVDR | Bangkok Bank vs. CK Power Public |
| Bangkok Dusit vs. Syntec Construction Public | Bangkok Dusit vs. Quality Construction Products | Bangkok Dusit vs. Turnkey Communication Services | Bangkok Dusit vs. CHUWIT FARM 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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