Correlation Between Bangkok Bank and Synnex Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Synnex 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 Synnex 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 Synnex Public, you can compare the effects of market volatilities on Bangkok Bank and Synnex 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 Synnex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Synnex Public.
Diversification Opportunities for Bangkok Bank and Synnex Public
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Synnex is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Synnex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex 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 Synnex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Public has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Synnex Public go up and down completely randomly.
Pair Corralation between Bangkok Bank and Synnex Public
Assuming the 90 days trading horizon Bangkok Bank Public is expected to generate 0.38 times more return on investment than Synnex Public. However, Bangkok Bank Public is 2.63 times less risky than Synnex Public. It trades about -0.15 of its potential returns per unit of risk. Synnex Public is currently generating about -0.17 per unit of risk. If you would invest 15,100 in Bangkok Bank Public on September 19, 2024 and sell it today you would lose (350.00) from holding Bangkok Bank Public or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. Synnex Public
Performance |
| Timeline |
| Bangkok Bank Public |
| Synnex Public |
Bangkok Bank and Synnex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Synnex Public
The main advantage of trading using opposite Bangkok Bank and Synnex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Synnex 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 Synnex Public will offset losses from the drop in Synnex Public's long position.| Bangkok Bank vs. KGI Securities Public | Bangkok Bank vs. Lalin Property Public | Bangkok Bank vs. Hwa Fong Rubber | Bangkok Bank vs. MCS Steel Public |
| Synnex Public vs. Land and Houses | Synnex Public vs. Delta Electronics Public | Synnex Public vs. The Siam Cement | Synnex 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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