Correlation Between Bangkok Bank and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Bank PCL and Dow Jones Industrial, you can compare the effects of market volatilities on Bangkok Bank and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Dow Jones.
Diversification Opportunities for Bangkok Bank and Dow Jones
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Dow is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank PCL and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 PCL are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Dow Jones go up and down completely randomly.
Pair Corralation between Bangkok Bank and Dow Jones
Assuming the 90 days horizon Bangkok Bank PCL is expected to generate 4.57 times more return on investment than Dow Jones. However, Bangkok Bank is 4.57 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,884 in Bangkok Bank PCL on November 4, 2024 and sell it today you would earn a total of 426.00 from holding Bangkok Bank PCL or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bangkok Bank PCL vs. Dow Jones Industrial
Performance |
| Timeline |
Bangkok Bank and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bangkok Bank PCL
Pair trading matchups for Bangkok Bank
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bangkok Bank and Dow Jones
The main advantage of trading using opposite Bangkok Bank and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Bangkok Bank vs. Partners Bank of | Bangkok Bank vs. BOC Hong Kong | Bangkok Bank vs. China Merchants Bank | Bangkok Bank vs. Bank of the |
| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |