Correlation Between SVOA Public and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both SVOA Public 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 SVOA Public and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVOA Public and Bangkok Bank Public, you can compare the effects of market volatilities on SVOA Public 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 SVOA Public with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVOA Public and Bangkok Bank.
Diversification Opportunities for SVOA Public and Bangkok Bank
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVOA and Bangkok is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SVOA Public 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 SVOA Public 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 SVOA Public 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 SVOA Public i.e., SVOA Public and Bangkok Bank go up and down completely randomly.
Pair Corralation between SVOA Public and Bangkok Bank
Assuming the 90 days trading horizon SVOA Public is expected to generate 39.63 times more return on investment than Bangkok Bank. However, SVOA Public is 39.63 times more volatile than Bangkok Bank Public. It trades about 0.04 of its potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.03 per unit of risk. If you would invest 229.00 in SVOA Public on September 12, 2024 and sell it today you would lose (106.00) from holding SVOA Public or give up 46.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVOA Public vs. Bangkok Bank Public
Performance |
| Timeline |
| SVOA Public |
| Bangkok Bank Public |
SVOA Public and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVOA Public and Bangkok Bank
The main advantage of trading using opposite SVOA Public and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVOA Public 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.| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. Delta Electronics Public | SVOA Public vs. The Siam Cement |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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