Correlation Between DBS Group and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both DBS Group 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 DBS Group and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBS Group Holdings and TMBThanachart Bank Public, you can compare the effects of market volatilities on DBS Group 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 DBS Group with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBS Group and TMBThanachart Bank.
Diversification Opportunities for DBS Group and TMBThanachart Bank
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DBS and TMBThanachart is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding DBS Group Holdings 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 DBS Group 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 DBS Group Holdings 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 DBS Group i.e., DBS Group and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between DBS Group and TMBThanachart Bank
Assuming the 90 days trading horizon DBS Group Holdings is expected to generate 2.06 times more return on investment than TMBThanachart Bank. However, DBS Group is 2.06 times more volatile than TMBThanachart Bank Public. It trades about 0.19 of its potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.05 per unit of risk. If you would invest 2,700 in DBS Group Holdings on August 29, 2024 and sell it today you would earn a total of 245.00 from holding DBS Group Holdings or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBS Group Holdings vs. TMBThanachart Bank Public
Performance |
| Timeline |
| DBS Group Holdings |
| TMBThanachart Bank Public |
DBS Group and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBS Group and TMBThanachart Bank
The main advantage of trading using opposite DBS Group and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBS Group 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.| DBS Group vs. Arrow Electronics | DBS Group vs. Benchmark Electronics | DBS Group vs. EAT WELL INVESTMENT | DBS Group vs. Strategic Investments AS |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |