Correlation Between Bangkok Bank and Bangkok Land
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Bangkok Land 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 Land 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 Land Public, you can compare the effects of market volatilities on Bangkok Bank and Bangkok Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Bangkok Land.
Diversification Opportunities for Bangkok Bank and Bangkok Land
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Bangkok is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Bangkok Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Land Public 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Land Public has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Bangkok Land go up and down completely randomly.
Pair Corralation between Bangkok Bank and Bangkok Land
Assuming the 90 days trading horizon Bangkok Bank Public is expected to generate 0.61 times more return on investment than Bangkok Land. However, Bangkok Bank Public is 1.64 times less risky than Bangkok Land. It trades about 0.05 of its potential returns per unit of risk. Bangkok Land Public is currently generating about -0.12 per unit of risk. If you would invest 15,200 in Bangkok Bank Public on November 3, 2024 and sell it today you would earn a total of 200.00 from holding Bangkok Bank Public or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. Bangkok Land Public
Performance |
| Timeline |
| Bangkok Bank Public |
| Bangkok Land Public |
Bangkok Bank and Bangkok Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Bangkok Land
The main advantage of trading using opposite Bangkok Bank and Bangkok Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Bangkok Land 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 Land will offset losses from the drop in Bangkok Land's long position.| Bangkok Bank vs. SCB X Public | Bangkok Bank vs. Kasikornbank Public | Bangkok Bank vs. PTT Public | Bangkok Bank vs. The Siam Cement |
| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. BTS Group Holdings | Bangkok Land vs. Quality Houses Public | Bangkok Land vs. Land and Houses |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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