Correlation Between Partners Bank and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Partners Bank and Bangkok 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 Partners Bank and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Bank of and Bangkok Bank PCL, you can compare the effects of market volatilities on Partners Bank and Bangkok 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 Partners Bank with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Bank and Bangkok Bank.
Diversification Opportunities for Partners Bank and Bangkok Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Partners and Bangkok is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Partners Bank of and Bangkok Bank PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank PCL and Partners 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 Partners Bank of are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank PCL has no effect on the direction of Partners Bank i.e., Partners Bank and Bangkok Bank go up and down completely randomly.
Pair Corralation between Partners Bank and Bangkok Bank
Given the investment horizon of 90 days Partners Bank is expected to generate 8.39 times less return on investment than Bangkok Bank. In addition to that, Partners Bank is 1.34 times more volatile than Bangkok Bank PCL. It trades about 0.01 of its total potential returns per unit of risk. Bangkok Bank PCL is currently generating about 0.13 per unit of volatility. If you would invest 2,145 in Bangkok Bank PCL on November 4, 2024 and sell it today you would earn a total of 165.00 from holding Bangkok Bank PCL or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Partners Bank of vs. Bangkok Bank PCL
Performance |
| Timeline |
| Partners Bank |
| Bangkok Bank PCL |
Partners Bank and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Bank and Bangkok Bank
The main advantage of trading using opposite Partners Bank and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Bank position performs unexpectedly, Bangkok 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Partners Bank vs. Bangkok Bank PCL | Partners Bank vs. BOC Hong Kong | Partners Bank vs. China Merchants Bank | Partners Bank vs. Magyar Bancorp |
| Bangkok Bank vs. Partners Bank of | Bangkok Bank vs. BOC Hong Kong | Bangkok Bank vs. China Merchants Bank | Bangkok Bank vs. Bank of the |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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