Correlation Between Bangkok Bank and SVOA Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and SVOA Public 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 SVOA Public 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 SVOA Public, you can compare the effects of market volatilities on Bangkok Bank and SVOA Public 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 SVOA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and SVOA Public.
Diversification Opportunities for Bangkok Bank and SVOA Public
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and SVOA is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and SVOA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVOA 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 SVOA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVOA Public has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and SVOA Public go up and down completely randomly.
Pair Corralation between Bangkok Bank and SVOA Public
Assuming the 90 days trading horizon Bangkok Bank is expected to generate 129.1 times less return on investment than SVOA Public. But when comparing it to its historical volatility, Bangkok Bank Public is 54.8 times less risky than SVOA Public. It trades about 0.02 of its potential returns per unit of risk. SVOA Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 188.00 in SVOA Public on September 4, 2024 and sell it today you would lose (65.00) from holding SVOA Public or give up 34.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Bangkok Bank Public vs. SVOA Public
Performance |
| Timeline |
| Bangkok Bank Public |
| SVOA Public |
Bangkok Bank and SVOA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and SVOA Public
The main advantage of trading using opposite Bangkok Bank and SVOA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, SVOA Public 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 SVOA Public will offset losses from the drop in SVOA Public'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 |
| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. The Siam Cement | SVOA Public vs. Bangkok Bank 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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