Correlation Between TMBThanachart Bank and Rich Sport
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Rich Sport 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 Rich Sport 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 Rich Sport Public, you can compare the effects of market volatilities on TMBThanachart Bank and Rich Sport 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 Rich Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Rich Sport.
Diversification Opportunities for TMBThanachart Bank and Rich Sport
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TMBThanachart and Rich is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Rich Sport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rich Sport 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 Rich Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rich Sport Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Rich Sport go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and Rich Sport
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.98 times more return on investment than Rich Sport. However, TMBThanachart Bank Public is 1.02 times less risky than Rich Sport. It trades about 0.31 of its potential returns per unit of risk. Rich Sport Public is currently generating about 0.05 per unit of risk. If you would invest 175.00 in TMBThanachart Bank Public on September 14, 2024 and sell it today you would earn a total of 12.00 from holding TMBThanachart Bank Public or generate 6.86% 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. Rich Sport Public
Performance |
| Timeline |
| TMBThanachart Bank Public |
| Rich Sport Public |
TMBThanachart Bank and Rich Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and Rich Sport
The main advantage of trading using opposite TMBThanachart Bank and Rich Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Rich Sport 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 Rich Sport will offset losses from the drop in Rich Sport'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 |
| Rich Sport vs. Samart Public | Rich Sport vs. Jasmine International Public | Rich Sport vs. Jay Mart Public | Rich Sport vs. MC Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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