Correlation Between Bangkok Bank and KRUNG THAI
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and KRUNG THAI 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 KRUNG THAI 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 KRUNG THAI FGN , you can compare the effects of market volatilities on Bangkok Bank and KRUNG THAI 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 KRUNG THAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and KRUNG THAI.
Diversification Opportunities for Bangkok Bank and KRUNG THAI
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangkok and KRUNG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and KRUNG THAI FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRUNG THAI 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 KRUNG THAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRUNG THAI FGN has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and KRUNG THAI go up and down completely randomly.
Pair Corralation between Bangkok Bank and KRUNG THAI
Assuming the 90 days trading horizon Bangkok Bank Public is expected to under-perform the KRUNG THAI. In addition to that, Bangkok Bank is 1.13 times more volatile than KRUNG THAI FGN . It trades about 0.0 of its total potential returns per unit of risk. KRUNG THAI FGN is currently generating about 0.06 per unit of volatility. If you would invest 54.00 in KRUNG THAI FGN on September 12, 2024 and sell it today you would earn a total of 4.00 from holding KRUNG THAI FGN or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Bank Public vs. KRUNG THAI FGN
Performance |
| Timeline |
| Bangkok Bank Public |
| KRUNG THAI FGN |
Bangkok Bank and KRUNG THAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and KRUNG THAI
The main advantage of trading using opposite Bangkok Bank and KRUNG THAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, KRUNG THAI 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 KRUNG THAI will offset losses from the drop in KRUNG THAI's long position.| Bangkok Bank vs. Charter Communications | Bangkok Bank vs. Chunghwa Telecom Co | Bangkok Bank vs. ANTA SPORTS PRODUCT | Bangkok Bank vs. SPORT LISBOA E |
| KRUNG THAI vs. Bangkok Bank Public | KRUNG THAI vs. Kasikornbank Public | KRUNG THAI vs. Krung Thai Bank | KRUNG THAI vs. TMBThanachart 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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