Correlation Between TMBThanachart Bank and JD Food
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and JD Food 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 JD Food 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 JD Food PCL, you can compare the effects of market volatilities on TMBThanachart Bank and JD Food 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 JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and JD Food.
Diversification Opportunities for TMBThanachart Bank and JD Food
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TMBThanachart and JDF is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL 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 JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and JD Food go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and JD Food
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.67 times more return on investment than JD Food. However, TMBThanachart Bank Public is 1.49 times less risky than JD Food. It trades about 0.08 of its potential returns per unit of risk. JD Food PCL is currently generating about -0.02 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 | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. JD Food PCL
Performance |
| Timeline |
| TMBThanachart Bank Public |
| JD Food PCL |
TMBThanachart Bank and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and JD Food
The main advantage of trading using opposite TMBThanachart Bank and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food'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 |
| JD Food vs. NSL Foods Public | JD Food vs. Chiangmai Frozen Foods | JD Food vs. Communication System Solution | JD Food vs. Tipco Foods 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |