Correlation Between Bangkok Bank and Cal Comp
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Cal Comp 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 Cal Comp 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 Cal Comp Electronics Public, you can compare the effects of market volatilities on Bangkok Bank and Cal Comp 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 Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Cal Comp.
Diversification Opportunities for Bangkok Bank and Cal Comp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and Cal is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics 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 Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Cal Comp go up and down completely randomly.
Pair Corralation between Bangkok Bank and Cal Comp
Assuming the 90 days trading horizon Bangkok Bank is expected to generate 11.39 times less return on investment than Cal Comp. But when comparing it to its historical volatility, Bangkok Bank Public is 8.88 times less risky than Cal Comp. It trades about 0.17 of its potential returns per unit of risk. Cal Comp Electronics Public is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Cal Comp Electronics Public on September 12, 2024 and sell it today you would earn a total of 230.00 from holding Cal Comp Electronics Public or generate 34.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. Cal Comp Electronics Public
Performance |
| Timeline |
| Bangkok Bank Public |
| Cal Comp Electronics |
Bangkok Bank and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Cal Comp
The main advantage of trading using opposite Bangkok Bank and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp'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 |
| Cal Comp vs. KCE Electronics Public | Cal Comp vs. Land and Houses | Cal Comp vs. Delta Electronics Public | Cal Comp vs. The Siam Cement |
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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