Correlation Between Bangkok Dusit and TTCL Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and TTCL 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 Dusit and TTCL Public 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 TTCL Public, you can compare the effects of market volatilities on Bangkok Dusit and TTCL 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 Dusit with a short position of TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and TTCL Public.
Diversification Opportunities for Bangkok Dusit and TTCL Public
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and TTCL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL 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 TTCL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTCL Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and TTCL Public go up and down completely randomly.
Pair Corralation between Bangkok Dusit and TTCL Public
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the TTCL Public. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 62.05 times less risky than TTCL Public. The stock trades about -0.01 of its potential returns per unit of risk. The TTCL Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 386.00 in TTCL Public on September 5, 2024 and sell it today you would lose (152.00) from holding TTCL Public or give up 39.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. TTCL Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| TTCL Public |
Bangkok Dusit and TTCL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and TTCL Public
The main advantage of trading using opposite Bangkok Dusit and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, TTCL 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 TTCL Public will offset losses from the drop in TTCL Public'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 |
| TTCL Public vs. Asia Aviation Public | TTCL Public vs. Bangkok Dusit Medical | TTCL Public vs. Bangkok Expressway and | TTCL Public 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |