Correlation Between Virtus Investment and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Bangkok Bank 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 Virtus Investment and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners and Bangkok Bank Public, you can compare the effects of market volatilities on Virtus Investment and Bangkok Bank 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 Virtus Investment with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Bangkok Bank.
Diversification Opportunities for Virtus Investment and Bangkok Bank
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and Bangkok is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Virtus Investment 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 Virtus Investment Partners are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Virtus Investment i.e., Virtus Investment and Bangkok Bank go up and down completely randomly.
Pair Corralation between Virtus Investment and Bangkok Bank
Assuming the 90 days horizon Virtus Investment Partners is expected to under-perform the Bangkok Bank. In addition to that, Virtus Investment is 1.01 times more volatile than Bangkok Bank Public. It trades about -0.13 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.13 per unit of volatility. If you would invest 404.00 in Bangkok Bank Public on October 24, 2024 and sell it today you would earn a total of 14.00 from holding Bangkok Bank Public or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners vs. Bangkok Bank Public
Performance |
| Timeline |
| Virtus Investment |
| Bangkok Bank Public |
Virtus Investment and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Bangkok Bank
The main advantage of trading using opposite Virtus Investment and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Virtus Investment vs. Stag Industrial | Virtus Investment vs. Forsys Metals Corp | Virtus Investment vs. MCEWEN MINING INC | Virtus Investment vs. ADRIATIC METALS LS 013355 |
| Bangkok Bank vs. Cass Information Systems | Bangkok Bank vs. PT Wintermar Offshore | Bangkok Bank vs. DATAGROUP SE | Bangkok Bank vs. Direct Line Insurance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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