Correlation Between Siri Prime and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Siri Prime 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 Siri Prime and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siri Prime Office and Bangkok Bank Public, you can compare the effects of market volatilities on Siri Prime 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 Siri Prime with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siri Prime and Bangkok Bank.
Diversification Opportunities for Siri Prime and Bangkok Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siri and Bangkok is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Siri Prime Office and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Siri Prime 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 Siri Prime Office 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 Public has no effect on the direction of Siri Prime i.e., Siri Prime and Bangkok Bank go up and down completely randomly.
Pair Corralation between Siri Prime and Bangkok Bank
Assuming the 90 days trading horizon Siri Prime Office is expected to under-perform the Bangkok Bank. In addition to that, Siri Prime is 1.78 times more volatile than Bangkok Bank Public. It trades about -0.04 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.09 per unit of volatility. If you would invest 14,700 in Bangkok Bank Public on September 1, 2024 and sell it today you would earn a total of 250.00 from holding Bangkok Bank Public or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siri Prime Office vs. Bangkok Bank Public
Performance |
| Timeline |
| Siri Prime Office |
| Bangkok Bank Public |
Siri Prime and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siri Prime and Bangkok Bank
The main advantage of trading using opposite Siri Prime and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siri Prime 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.| Siri Prime vs. Land and Houses | Siri Prime vs. Bangkok Bank Public | Siri Prime vs. Charoen Pokphand Foods |
| Bangkok Bank vs. SCB X Public | Bangkok Bank vs. Kasikornbank Public | Bangkok Bank vs. PTT Public | Bangkok Bank vs. The Siam Cement |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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