Correlation Between ICICI Bank and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both ICICI Bank 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 ICICI Bank and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICICI Bank Limited and TMBThanachart Bank Public, you can compare the effects of market volatilities on ICICI Bank 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 ICICI Bank with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and TMBThanachart Bank.
Diversification Opportunities for ICICI Bank and TMBThanachart Bank
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and TMBThanachart is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited 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 ICICI 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 ICICI Bank Limited 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 ICICI Bank i.e., ICICI Bank and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between ICICI Bank and TMBThanachart Bank
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 1.11 times more return on investment than TMBThanachart Bank. However, ICICI Bank is 1.11 times more volatile than TMBThanachart Bank Public. It trades about 0.06 of its potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.04 per unit of risk. If you would invest 2,140 in ICICI Bank Limited on September 26, 2024 and sell it today you would earn a total of 800.00 from holding ICICI Bank Limited or generate 37.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. TMBThanachart Bank Public
Performance |
| Timeline |
| ICICI Bank Limited |
| TMBThanachart Bank Public |
ICICI Bank and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and TMBThanachart Bank
The main advantage of trading using opposite ICICI Bank and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank 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.| ICICI Bank vs. China Merchants Bank | ICICI Bank vs. HDFC Bank Limited | ICICI Bank vs. PT Bank Central | ICICI Bank vs. DBS Group Holdings |
| TMBThanachart Bank vs. China Merchants Bank | TMBThanachart Bank vs. HDFC Bank Limited | TMBThanachart Bank vs. ICICI Bank Limited | TMBThanachart Bank vs. PT Bank Central |
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
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |