Correlation Between MAROC TELECOM and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both MAROC TELECOM 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 MAROC TELECOM and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAROC TELECOM and TMBThanachart Bank Public, you can compare the effects of market volatilities on MAROC TELECOM 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 MAROC TELECOM with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAROC TELECOM and TMBThanachart Bank.
Diversification Opportunities for MAROC TELECOM and TMBThanachart Bank
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAROC and TMBThanachart is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MAROC TELECOM 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 MAROC TELECOM 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 MAROC TELECOM 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 MAROC TELECOM i.e., MAROC TELECOM and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between MAROC TELECOM and TMBThanachart Bank
Assuming the 90 days trading horizon MAROC TELECOM is expected to generate 2.52 times more return on investment than TMBThanachart Bank. However, MAROC TELECOM is 2.52 times more volatile than TMBThanachart Bank Public. It trades about 0.05 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 341.00 in MAROC TELECOM on October 7, 2024 and sell it today you would earn a total of 424.00 from holding MAROC TELECOM or generate 124.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAROC TELECOM vs. TMBThanachart Bank Public
Performance |
| Timeline |
| MAROC TELECOM |
| TMBThanachart Bank Public |
MAROC TELECOM and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAROC TELECOM and TMBThanachart Bank
The main advantage of trading using opposite MAROC TELECOM and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAROC TELECOM 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.| MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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