Correlation Between Bangkok Bank and Siri Prime
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Siri Prime 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 Siri Prime 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 Siri Prime Office, you can compare the effects of market volatilities on Bangkok Bank and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Siri Prime.
Diversification Opportunities for Bangkok Bank and Siri Prime
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Siri is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Siri Prime go up and down completely randomly.
Pair Corralation between Bangkok Bank and Siri Prime
Assuming the 90 days trading horizon Bangkok Bank Public is expected to under-perform the Siri Prime. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Bank Public is 1.49 times less risky than Siri Prime. The stock trades about 0.0 of its potential returns per unit of risk. The Siri Prime Office is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Siri Prime Office on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Siri Prime Office or generate 9.76% 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. Siri Prime Office
Performance |
| Timeline |
| Bangkok Bank Public |
| Siri Prime Office |
Bangkok Bank and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Siri Prime
The main advantage of trading using opposite Bangkok Bank and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime'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 |
| Siri Prime vs. Land and Houses | Siri Prime vs. Bangkok Bank Public | Siri Prime vs. Charoen Pokphand Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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