Correlation Between Business Online and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both Business Online and TMBThanachart Bank 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 Business Online and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Business Online PCL and TMBThanachart Bank Public, you can compare the effects of market volatilities on Business Online and TMBThanachart Bank 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 Business Online with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Business Online and TMBThanachart Bank.
Diversification Opportunities for Business Online and TMBThanachart Bank
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Business and TMBThanachart is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Business Online PCL and TMBThanachart Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMBThanachart Bank Public and Business Online 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 Business Online PCL are associated (or correlated) with TMBThanachart Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMBThanachart Bank Public has no effect on the direction of Business Online i.e., Business Online and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between Business Online and TMBThanachart Bank
Assuming the 90 days trading horizon Business Online PCL is expected to generate 0.29 times more return on investment than TMBThanachart Bank. However, Business Online PCL is 3.47 times less risky than TMBThanachart Bank. It trades about -0.31 of its potential returns per unit of risk. TMBThanachart Bank Public is currently generating about -0.09 per unit of risk. If you would invest 640.00 in Business Online PCL on September 1, 2024 and sell it today you would lose (80.00) from holding Business Online PCL or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Business Online PCL vs. TMBThanachart Bank Public
Performance |
| Timeline |
| Business Online PCL |
| TMBThanachart Bank Public |
Business Online and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Business Online and TMBThanachart Bank
The main advantage of trading using opposite Business Online and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Business Online position performs unexpectedly, TMBThanachart Bank 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 TMBThanachart Bank will offset losses from the drop in TMBThanachart Bank's long position.| Business Online vs. Premier Technology Public | Business Online vs. Sea Oil Public | Business Online vs. Thai Mitsuwa Public | Business Online vs. The Erawan Group |
| TMBThanachart Bank vs. China Merchants Bank | TMBThanachart Bank vs. PT Bank Central | TMBThanachart Bank vs. State Bank of |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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