Correlation Between Bangkok Life and TQM PORATION
Can any of the company-specific risk be diversified away by investing in both Bangkok Life and TQM PORATION 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 Life and TQM PORATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Life Assurance and TQM PORATION, you can compare the effects of market volatilities on Bangkok Life and TQM PORATION 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 Life with a short position of TQM PORATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Life and TQM PORATION.
Diversification Opportunities for Bangkok Life and TQM PORATION
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and TQM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Life Assurance and TQM PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TQM PORATION and Bangkok Life 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 Life Assurance are associated (or correlated) with TQM PORATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TQM PORATION has no effect on the direction of Bangkok Life i.e., Bangkok Life and TQM PORATION go up and down completely randomly.
Pair Corralation between Bangkok Life and TQM PORATION
Assuming the 90 days trading horizon Bangkok Life Assurance is expected to generate 0.86 times more return on investment than TQM PORATION. However, Bangkok Life Assurance is 1.16 times less risky than TQM PORATION. It trades about 0.12 of its potential returns per unit of risk. TQM PORATION is currently generating about -0.32 per unit of risk. If you would invest 1,876 in Bangkok Life Assurance on December 1, 2024 and sell it today you would earn a total of 134.00 from holding Bangkok Life Assurance or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bangkok Life Assurance vs. TQM PORATION
Performance |
| Timeline |
| Bangkok Life Assurance |
| TQM PORATION |
Bangkok Life and TQM PORATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Life and TQM PORATION
The main advantage of trading using opposite Bangkok Life and TQM PORATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Life position performs unexpectedly, TQM PORATION 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 TQM PORATION will offset losses from the drop in TQM PORATION's long position.| Bangkok Life vs. President Automobile Industries | Bangkok Life vs. Interlink Communication Public | Bangkok Life vs. ND Rubber Public | Bangkok Life vs. Indara Insurance Public |
| TQM PORATION vs. PTG Energy Public | TQM PORATION vs. Bangkok Life Assurance | TQM PORATION vs. TQM 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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