Correlation Between Bangkok Bank and SG Capital
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and SG Capital 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 SG Capital 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 SG Capital PCL, you can compare the effects of market volatilities on Bangkok Bank and SG Capital 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 SG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and SG Capital.
Diversification Opportunities for Bangkok Bank and SG Capital
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and SGC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and SG Capital PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Capital PCL 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 SG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Capital PCL has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and SG Capital go up and down completely randomly.
Pair Corralation between Bangkok Bank and SG Capital
Assuming the 90 days trading horizon Bangkok Bank Public is expected to generate 0.3 times more return on investment than SG Capital. However, Bangkok Bank Public is 3.33 times less risky than SG Capital. It trades about 0.15 of its potential returns per unit of risk. SG Capital PCL is currently generating about -0.18 per unit of risk. If you would invest 14,550 in Bangkok Bank Public on September 3, 2024 and sell it today you would earn a total of 400.00 from holding Bangkok Bank Public or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. SG Capital PCL
Performance |
| Timeline |
| Bangkok Bank Public |
| SG Capital PCL |
Bangkok Bank and SG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and SG Capital
The main advantage of trading using opposite Bangkok Bank and SG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, SG Capital 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 SG Capital will offset losses from the drop in SG Capital'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 |
| SG Capital vs. Delta Electronics Public | SG Capital vs. Delta Electronics Public | SG Capital vs. Airports of Thailand | SG Capital vs. Airports of Thailand |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |