Correlation Between NTG Nordic and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and TMBThanachart Bank Public, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and TMBThanachart Bank.
Diversification Opportunities for NTG Nordic and TMBThanachart Bank
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NTG and TMBThanachart is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport 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 NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between NTG Nordic and TMBThanachart Bank
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the TMBThanachart Bank. In addition to that, NTG Nordic is 1.1 times more volatile than TMBThanachart Bank Public. It trades about -0.22 of its total potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.25 per unit of volatility. If you would invest 5.05 in TMBThanachart Bank Public on November 3, 2024 and sell it today you would earn a total of 0.45 from holding TMBThanachart Bank Public or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. TMBThanachart Bank Public
Performance |
| Timeline |
| NTG Nordic Transport |
| TMBThanachart Bank Public |
NTG Nordic and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and TMBThanachart Bank
The main advantage of trading using opposite NTG Nordic and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Universal Entertainment | NTG Nordic vs. Guangdong Investment Limited | NTG Nordic vs. PROSIEBENSAT1 MEDIADR4 | NTG Nordic vs. AGNC INVESTMENT |
| TMBThanachart Bank vs. Texas Roadhouse | TMBThanachart Bank vs. Gold Road Resources | TMBThanachart Bank vs. Air Transport Services | TMBThanachart Bank vs. alstria office REIT AG |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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