Correlation Between TMBThanachart Bank and TPC Power
Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and TPC Power 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 TPC Power 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 TPC Power Holding, you can compare the effects of market volatilities on TMBThanachart Bank and TPC Power 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 TPC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and TPC Power.
Diversification Opportunities for TMBThanachart Bank and TPC Power
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TMBThanachart and TPC is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and TPC Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPC Power Holding 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 TPC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPC Power Holding has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and TPC Power go up and down completely randomly.
Pair Corralation between TMBThanachart Bank and TPC Power
Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.72 times more return on investment than TPC Power. However, TMBThanachart Bank Public is 1.4 times less risky than TPC Power. It trades about 0.08 of its potential returns per unit of risk. TPC Power Holding is currently generating about -0.06 per unit of risk. If you would invest 116.00 in TMBThanachart Bank Public on December 4, 2024 and sell it today you would earn a total of 76.00 from holding TMBThanachart Bank Public or generate 65.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
TMBThanachart Bank Public vs. TPC Power Holding
Performance |
| Timeline |
| TMBThanachart Bank Public |
| TPC Power Holding |
TMBThanachart Bank and TPC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMBThanachart Bank and TPC Power
The main advantage of trading using opposite TMBThanachart Bank and TPC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, TPC Power 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 TPC Power will offset losses from the drop in TPC Power'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 |
| TPC Power vs. WHA Public | TPC Power vs. Energy Absolute Public | TPC Power vs. TPI Polene Public | TPC Power vs. Thai Solar Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |