Correlation Between TMBThanachart Bank and Grande Hospitality
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By analyzing existing cross correlation between TMBThanachart Bank Public and Grande Hospitality Real, you can compare the effects of market volatilities on TMBThanachart Bank and Grande Hospitality 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 Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Grande Hospitality.
Diversification Opportunities for TMBThanachart Bank and Grande Hospitality
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TMBThanachart and Grande is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Grande Hospitality Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Hospitality Real 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 Grande Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Hospitality Real has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Grande Hospitality go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Grande Hospitality
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 1.2 times more return on investment than Grande Hospitality. However, TMBThanachart Bank is 1.2 times more volatile than Grande Hospitality Real. It trades about 0.03 of its potential returns per unit of risk. Grande Hospitality Real is currently generating about 0.01 per unit of risk. If you would invest 170.00 in TMBThanachart Bank Public on September 3, 2024 and sell it today you would earn a total of 6.00 from holding TMBThanachart Bank Public or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. Grande Hospitality Real
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Grande Hospitality Real |
TMBThanachart Bank and Grande Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Grande Hospitality
The main advantage of trading using opposite TMBThanachart Bank and Grande Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Grande Hospitality 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 Grande Hospitality will offset losses from the drop in Grande Hospitality's long position.| TMBThanachart Bank vs. TISCO Financial Group | TMBThanachart Bank vs. Krung Thai Bank | TMBThanachart Bank vs. Kasikornbank Public | TMBThanachart Bank vs. SCB X Public |
| Grande Hospitality vs. Ramkhamhaeng Hospital Public | Grande Hospitality vs. BPS TECHNOLOGY PUBLIC | Grande Hospitality vs. SAF Special Steel | Grande Hospitality vs. S Hotels and |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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