Correlation Between TMBThanachart Bank and Greencoat
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Greencoat 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 Greencoat 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 Greencoat UK Wind, you can compare the effects of market volatilities on TMBThanachart Bank and Greencoat 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 Greencoat. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Greencoat.
Diversification Opportunities for TMBThanachart Bank and Greencoat
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TMBThanachart and Greencoat is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Greencoat UK Wind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencoat UK Wind 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 Greencoat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencoat UK Wind has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Greencoat go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Greencoat
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.54 times more return on investment than Greencoat. However, TMBThanachart Bank Public is 1.86 times less risky than Greencoat. It trades about 0.19 of its potential returns per unit of risk. Greencoat UK Wind is currently generating about -0.03 per unit of risk. If you would invest 5.15 in TMBThanachart Bank Public on November 27, 2024 and sell it today you would earn a total of 0.25 from holding TMBThanachart Bank Public or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. Greencoat UK Wind
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Greencoat UK Wind |
TMBThanachart Bank and Greencoat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Greencoat
The main advantage of trading using opposite TMBThanachart Bank and Greencoat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Greencoat 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 Greencoat will offset losses from the drop in Greencoat's long position.| TMBThanachart Bank vs. Cal Maine Foods | TMBThanachart Bank vs. PLANT VEDA FOODS | TMBThanachart Bank vs. MOLSON RS BEVERAGE | TMBThanachart Bank vs. CANON MARKETING JP |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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