Correlation Between Bangkok Bank and Nfc PLC
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Nfc PLC 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 Nfc PLC 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 Nfc PLC, you can compare the effects of market volatilities on Bangkok Bank and Nfc PLC 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 Nfc PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Nfc PLC.
Diversification Opportunities for Bangkok Bank and Nfc PLC
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Nfc is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Nfc PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nfc PLC 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 Nfc PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nfc PLC has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Nfc PLC go up and down completely randomly.
Pair Corralation between Bangkok Bank and Nfc PLC
Assuming the 90 days trading horizon Bangkok Bank Public is expected to generate 0.25 times more return on investment than Nfc PLC. However, Bangkok Bank Public is 4.0 times less risky than Nfc PLC. It trades about -0.11 of its potential returns per unit of risk. Nfc PLC is currently generating about -0.09 per unit of risk. If you would invest 15,050 in Bangkok Bank Public on August 29, 2024 and sell it today you would lose (350.00) from holding Bangkok Bank Public or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. Nfc PLC
Performance |
| Timeline |
| Bangkok Bank Public |
| Nfc PLC |
Bangkok Bank and Nfc PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Nfc PLC
The main advantage of trading using opposite Bangkok Bank and Nfc PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Nfc PLC 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 Nfc PLC will offset losses from the drop in Nfc PLC's long position.| Bangkok Bank vs. Thai Energy Storage | Bangkok Bank vs. Royal Orchid Hotel | Bangkok Bank vs. Grand Canal Land | Bangkok Bank vs. PRG Public |
| Nfc PLC vs. Lam Soon Public | Nfc PLC vs. Newcity Public | Nfc PLC vs. Metro Systems | Nfc PLC vs. Nonthavej Hospital 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |