Correlation Between Muangthai Capital and Bangkok Life
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and Bangkok Life 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 Muangthai Capital and Bangkok Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muangthai Capital Public and Bangkok Life Assurance, you can compare the effects of market volatilities on Muangthai Capital and Bangkok Life 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 Muangthai Capital with a short position of Bangkok Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and Bangkok Life.
Diversification Opportunities for Muangthai Capital and Bangkok Life
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Muangthai and Bangkok is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and Bangkok Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Life Assurance and Muangthai Capital 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 Muangthai Capital Public are associated (or correlated) with Bangkok Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Life Assurance has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and Bangkok Life go up and down completely randomly.
Pair Corralation between Muangthai Capital and Bangkok Life
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 23.54 times more return on investment than Bangkok Life. However, Muangthai Capital is 23.54 times more volatile than Bangkok Life Assurance. It trades about 0.05 of its potential returns per unit of risk. Bangkok Life Assurance is currently generating about -0.02 per unit of risk. If you would invest 4,106 in Muangthai Capital Public on August 31, 2024 and sell it today you would earn a total of 794.00 from holding Muangthai Capital Public or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Muangthai Capital Public vs. Bangkok Life Assurance
Performance |
| Timeline |
| Muangthai Capital Public |
| Bangkok Life Assurance |
Muangthai Capital and Bangkok Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and Bangkok Life
The main advantage of trading using opposite Muangthai Capital and Bangkok Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, Bangkok Life 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 Life will offset losses from the drop in Bangkok Life's long position.| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Gulf Energy Development | Muangthai Capital vs. Krungthai Card PCL | Muangthai Capital vs. Carabao Group Public |
| Bangkok Life vs. Bangkok Bank Public | Bangkok Life vs. Indorama Ventures PCL | Bangkok Life vs. Bumrungrad Hospital Public | Bangkok Life vs. Bangkok Dusit Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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