Correlation Between TMBThanachart Bank and News
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and News 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 News 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 News Corporation, you can compare the effects of market volatilities on TMBThanachart Bank and News 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 News. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and News.
Diversification Opportunities for TMBThanachart Bank and News
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TMBThanachart and News is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and News Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News 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 News. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and News go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and News
Assuming the 90 days trading horizon TMBThanachart Bank is expected to generate 91.79 times less return on investment than News. But when comparing it to its historical volatility, TMBThanachart Bank Public is 1.47 times less risky than News. It trades about 0.0 of its potential returns per unit of risk. News Corporation is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,480 in News Corporation on September 1, 2024 and sell it today you would earn a total of 280.00 from holding News Corporation or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. News Corp.
Performance |
| Timeline |
| TMBThanachart Bank Public |
| News |
TMBThanachart Bank and News Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and News
The main advantage of trading using opposite TMBThanachart Bank and News positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, News 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 News will offset losses from the drop in News' long position.| TMBThanachart Bank vs. China Merchants Bank | TMBThanachart Bank vs. PT Bank Central | TMBThanachart Bank vs. State Bank of |
| News vs. Superior Plus Corp | News vs. NMI Holdings | News vs. Origin Agritech | News vs. SIVERS SEMICONDUCTORS AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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