Correlation Between TMBThanachart Bank and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Healthlead Public 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 TMBThanachart Bank and Healthlead Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TMBThanachart Bank Public and Healthlead Public, you can compare the effects of market volatilities on TMBThanachart Bank and Healthlead Public 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 Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Healthlead Public.
Diversification Opportunities for TMBThanachart Bank and Healthlead Public
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TMBThanachart and Healthlead is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead Public 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 Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Healthlead Public go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Healthlead Public
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.6 times more return on investment than Healthlead Public. However, TMBThanachart Bank Public is 1.66 times less risky than Healthlead Public. It trades about 0.08 of its potential returns per unit of risk. Healthlead Public is currently generating about -0.09 per unit of risk. If you would invest 119.00 in TMBThanachart Bank Public on November 30, 2024 and sell it today you would earn a total of 75.00 from holding TMBThanachart Bank Public or generate 63.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. Healthlead Public
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Healthlead Public |
TMBThanachart Bank and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Healthlead Public
The main advantage of trading using opposite TMBThanachart Bank and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Healthlead Public 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 Healthlead Public will offset losses from the drop in Healthlead Public'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 |
| Healthlead Public vs. II Group Public | Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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