Correlation Between Bangkok Dusit and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Bangkok Bank 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 Dusit and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Bangkok Bank Public, you can compare the effects of market volatilities on Bangkok Dusit and Bangkok Bank 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 Dusit with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Bangkok Bank.
Diversification Opportunities for Bangkok Dusit and Bangkok Bank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Bangkok is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Bangkok Dusit 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 Dusit Medical are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Bangkok Bank go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Bangkok Bank
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Bangkok Bank. In addition to that, Bangkok Dusit is 1.61 times more volatile than Bangkok Bank Public. It trades about -0.27 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about -0.11 per unit of volatility. 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 Dusit Medical vs. Bangkok Bank Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Bangkok Bank Public |
Bangkok Dusit and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Bangkok Bank
The main advantage of trading using opposite Bangkok Dusit and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
| Bangkok Bank vs. Karmarts Public | Bangkok Bank vs. Kang Yong Electric | Bangkok Bank vs. Kiatnakin Phatra Bank | Bangkok Bank vs. SCG PACKAGING PCL NVDR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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