Correlation Between TMBThanachart Bank and J JILL
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and J JILL 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 TMBThanachart Bank and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TMBThanachart Bank Public and J JILL INC, you can compare the effects of market volatilities on TMBThanachart Bank and J JILL 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 TMBThanachart Bank with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and J JILL.
Diversification Opportunities for TMBThanachart Bank and J JILL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TMBThanachart and 1MJ1 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC and TMBThanachart 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 TMBThanachart Bank Public are associated (or correlated) with J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and J JILL go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and J JILL
Assuming the 90 days trading horizon TMBThanachart Bank is expected to generate 11.11 times less return on investment than J JILL. But when comparing it to its historical volatility, TMBThanachart Bank Public is 2.44 times less risky than J JILL. It trades about 0.05 of its potential returns per unit of risk. J JILL INC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,280 in J JILL INC on August 28, 2024 and sell it today you would earn a total of 300.00 from holding J JILL INC or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. J JILL INC
Performance |
| Timeline |
| TMBThanachart Bank Public |
| J JILL INC |
TMBThanachart Bank and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and J JILL
The main advantage of trading using opposite TMBThanachart Bank and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, J JILL 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 J JILL will offset losses from the drop in J JILL's long position.The idea behind TMBThanachart Bank Public and J JILL INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| J JILL vs. RETAIL FOOD GROUP | J JILL vs. Auto Trader Group | J JILL vs. AUTO TRADER ADR | J JILL vs. Canadian Utilities Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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