Correlation Between Bangkok Bank and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and SCG PACKAGING 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 SCG PACKAGING 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 SCG PACKAGING FGN , you can compare the effects of market volatilities on Bangkok Bank and SCG PACKAGING 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 SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and SCG PACKAGING.
Diversification Opportunities for Bangkok Bank and SCG PACKAGING
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangkok and SCG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and SCG PACKAGING FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING FGN 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 SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING FGN has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Bangkok Bank and SCG PACKAGING
Assuming the 90 days trading horizon Bangkok Bank Public is expected to generate 0.61 times more return on investment than SCG PACKAGING. However, Bangkok Bank Public is 1.63 times less risky than SCG PACKAGING. It trades about -0.02 of its potential returns per unit of risk. SCG PACKAGING FGN is currently generating about -0.25 per unit of risk. If you would invest 404.00 in Bangkok Bank Public on September 4, 2024 and sell it today you would lose (4.00) from holding Bangkok Bank Public or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. SCG PACKAGING FGN
Performance |
| Timeline |
| Bangkok Bank Public |
| SCG PACKAGING FGN |
Bangkok Bank and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and SCG PACKAGING
The main advantage of trading using opposite Bangkok Bank and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| Bangkok Bank vs. China Merchants Bank | Bangkok Bank vs. PT Bank Central | Bangkok Bank vs. DBS Group Holdings | Bangkok Bank vs. State Bank of |
| SCG PACKAGING vs. Indorama Ventures PCL | SCG PACKAGING vs. PTT GLBL CHEM NVDR | SCG PACKAGING vs. Intouch Holdings Public | SCG PACKAGING 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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