Correlation Between TMBThanachart Bank and Pioneer
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Pioneer 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 Pioneer 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 Pioneer Motor Public, you can compare the effects of market volatilities on TMBThanachart Bank and Pioneer 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 Pioneer. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Pioneer.
Diversification Opportunities for TMBThanachart Bank and Pioneer
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TMBThanachart and Pioneer is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Pioneer Motor Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Motor 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 Pioneer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Motor Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Pioneer go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Pioneer
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.7 times more return on investment than Pioneer. However, TMBThanachart Bank Public is 1.42 times less risky than Pioneer. It trades about 0.07 of its potential returns per unit of risk. Pioneer Motor Public is currently generating about -0.23 per unit of risk. If you would invest 181.00 in TMBThanachart Bank Public on October 26, 2024 and sell it today you would earn a total of 6.00 from holding TMBThanachart Bank Public or generate 3.31% 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. Pioneer Motor Public
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Pioneer Motor Public |
TMBThanachart Bank and Pioneer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Pioneer
The main advantage of trading using opposite TMBThanachart Bank and Pioneer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Pioneer 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 Pioneer will offset losses from the drop in Pioneer's long position.| TMBThanachart Bank vs. The Siam Commercial | TMBThanachart Bank vs. Kasikornbank Public | TMBThanachart Bank vs. Kiatnakin Phatra Bank | TMBThanachart Bank vs. LH Financial Group |
| Pioneer vs. Exotic Food Public | Pioneer vs. Panjawattana Plastic Public | Pioneer vs. Mega Lifesciences Public | Pioneer vs. Phol Dhanya 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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