Correlation Between Thaicom Public and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Thaicom Public and Bangkok Chain 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 Thaicom Public and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaicom Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Thaicom Public and Bangkok Chain 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 Thaicom Public with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaicom Public and Bangkok Chain.
Diversification Opportunities for Thaicom Public and Bangkok Chain
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thaicom and Bangkok is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Thaicom Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Thaicom 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 Thaicom Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Thaicom Public i.e., Thaicom Public and Bangkok Chain go up and down completely randomly.
Pair Corralation between Thaicom Public and Bangkok Chain
Assuming the 90 days trading horizon Thaicom Public is expected to under-perform the Bangkok Chain. But the stock apears to be less risky and, when comparing its historical volatility, Thaicom Public is 1.28 times less risky than Bangkok Chain. The stock trades about -0.13 of its potential returns per unit of risk. The Bangkok Chain Hospital is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Bangkok Chain Hospital on November 29, 2024 and sell it today you would earn a total of 60.00 from holding Bangkok Chain Hospital or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thaicom Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Thaicom Public |
| Bangkok Chain Hospital |
Thaicom Public and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaicom Public and Bangkok Chain
The main advantage of trading using opposite Thaicom Public and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaicom Public position performs unexpectedly, Bangkok Chain 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 Chain will offset losses from the drop in Bangkok Chain's long position.| Thaicom Public vs. Intouch Holdings Public | Thaicom Public vs. Advanced Info Service | Thaicom Public vs. True Public | Thaicom Public vs. PTT Global Chemical |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital PCL | Bangkok Chain vs. Advanced Info Service |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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