Correlation Between TMBThanachart Bank and REGIONS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and REGIONS FINANCIAL 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 REGIONS FINANCIAL 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 REGIONS FINANCIAL PFD, you can compare the effects of market volatilities on TMBThanachart Bank and REGIONS FINANCIAL 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 REGIONS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and REGIONS FINANCIAL.
Diversification Opportunities for TMBThanachart Bank and REGIONS FINANCIAL
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TMBThanachart and REGIONS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and REGIONS FINANCIAL PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGIONS FINANCIAL PFD 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 REGIONS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGIONS FINANCIAL PFD has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and REGIONS FINANCIAL go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and REGIONS FINANCIAL
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 1.09 times more return on investment than REGIONS FINANCIAL. However, TMBThanachart Bank is 1.09 times more volatile than REGIONS FINANCIAL PFD. It trades about 0.05 of its potential returns per unit of risk. REGIONS FINANCIAL PFD is currently generating about 0.02 per unit of risk. If you would invest 3.75 in TMBThanachart Bank Public on November 2, 2024 and sell it today you would earn a total of 1.65 from holding TMBThanachart Bank Public or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. REGIONS FINANCIAL PFD
Performance |
| Timeline |
| TMBThanachart Bank Public |
| REGIONS FINANCIAL PFD |
TMBThanachart Bank and REGIONS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and REGIONS FINANCIAL
The main advantage of trading using opposite TMBThanachart Bank and REGIONS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, REGIONS FINANCIAL 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 REGIONS FINANCIAL will offset losses from the drop in REGIONS FINANCIAL's long position.| TMBThanachart Bank vs. Cleanaway Waste Management | TMBThanachart Bank vs. Zijin Mining Group | TMBThanachart Bank vs. Clean Energy Fuels | TMBThanachart Bank vs. GALENA MINING LTD |
| REGIONS FINANCIAL vs. Materialise NV | REGIONS FINANCIAL vs. HAVERTY FURNITURE A | REGIONS FINANCIAL vs. Taylor Morrison Home | REGIONS FINANCIAL vs. The Yokohama Rubber |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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