Correlation Between TMBThanachart Bank and Indara Insurance
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Indara Insurance 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 Indara Insurance 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 Indara Insurance Public, you can compare the effects of market volatilities on TMBThanachart Bank and Indara Insurance 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 Indara Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Indara Insurance.
Diversification Opportunities for TMBThanachart Bank and Indara Insurance
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TMBThanachart and Indara is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Indara Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indara Insurance 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 Indara Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indara Insurance Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Indara Insurance go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Indara Insurance
Assuming the 90 days trading horizon TMBThanachart Bank is expected to generate 90.22 times less return on investment than Indara Insurance. But when comparing it to its historical volatility, TMBThanachart Bank Public is 77.52 times less risky than Indara Insurance. It trades about 0.08 of its potential returns per unit of risk. Indara Insurance Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Indara Insurance Public on November 2, 2024 and sell it today you would earn a total of 8,100 from holding Indara Insurance Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. Indara Insurance Public
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Indara Insurance Public |
TMBThanachart Bank and Indara Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Indara Insurance
The main advantage of trading using opposite TMBThanachart Bank and Indara Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Indara Insurance 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 Indara Insurance will offset losses from the drop in Indara Insurance'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 |
| Indara Insurance vs. IFS Capital Public | Indara Insurance vs. Internet Thailand Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. Haad Thip 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |