Correlation Between Consolidated Communications and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Consolidated Communications and Bangkok 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 Consolidated Communications and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consolidated Communications Holdings and Bangkok Bank Public, you can compare the effects of market volatilities on Consolidated Communications and Bangkok 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 Consolidated Communications with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Communications and Bangkok Bank.
Diversification Opportunities for Consolidated Communications and Bangkok Bank
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Consolidated and Bangkok is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Communications Ho and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Consolidated Communications 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 Consolidated Communications Holdings are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Consolidated Communications i.e., Consolidated Communications and Bangkok Bank go up and down completely randomly.
Pair Corralation between Consolidated Communications and Bangkok Bank
If you would invest 404.00 in Bangkok Bank Public on October 22, 2024 and sell it today you would earn a total of 18.00 from holding Bangkok Bank Public or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.53% |
| Values | Daily Returns |
Consolidated Communications Ho vs. Bangkok Bank Public
Performance |
| Timeline |
| Consolidated Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Bangkok Bank Public |
Consolidated Communications and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Communications and Bangkok Bank
The main advantage of trading using opposite Consolidated Communications and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Communications position performs unexpectedly, Bangkok 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Consolidated Communications vs. Zoom Video Communications | Consolidated Communications vs. Boyd Gaming | Consolidated Communications vs. PENN NATL GAMING | Consolidated Communications vs. QINGCI GAMES INC |
| Bangkok Bank vs. TEXAS ROADHOUSE | Bangkok Bank vs. Broadridge Financial Solutions | Bangkok Bank vs. Texas Roadhouse | Bangkok Bank vs. TOMBADOR IRON LTD |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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