Correlation Between Warrix Sport and Bank of Ayudhya
Can any of the company-specific risk be diversified away by investing in both Warrix Sport and Bank of Ayudhya 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 Warrix Sport and Bank of Ayudhya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Warrix Sport PCL and Bank of Ayudhya, you can compare the effects of market volatilities on Warrix Sport and Bank of Ayudhya 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 Warrix Sport with a short position of Bank of Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warrix Sport and Bank of Ayudhya.
Diversification Opportunities for Warrix Sport and Bank of Ayudhya
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Warrix and Bank is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Warrix Sport PCL and Bank of Ayudhya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ayudhya and Warrix Sport 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 Warrix Sport PCL are associated (or correlated) with Bank of Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ayudhya has no effect on the direction of Warrix Sport i.e., Warrix Sport and Bank of Ayudhya go up and down completely randomly.
Pair Corralation between Warrix Sport and Bank of Ayudhya
Assuming the 90 days trading horizon Warrix Sport PCL is expected to generate 4.33 times more return on investment than Bank of Ayudhya. However, Warrix Sport is 4.33 times more volatile than Bank of Ayudhya. It trades about 0.16 of its potential returns per unit of risk. Bank of Ayudhya is currently generating about 0.03 per unit of risk. If you would invest 356.00 in Warrix Sport PCL on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Warrix Sport PCL or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Warrix Sport PCL vs. Bank of Ayudhya
Performance |
| Timeline |
| Warrix Sport PCL |
| Bank of Ayudhya |
Warrix Sport and Bank of Ayudhya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Warrix Sport and Bank of Ayudhya
The main advantage of trading using opposite Warrix Sport and Bank of Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warrix Sport position performs unexpectedly, Bank of Ayudhya 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 Bank of Ayudhya will offset losses from the drop in Bank of Ayudhya's long position.| Warrix Sport vs. SG Capital PCL | Warrix Sport vs. Bound and Beyond | Warrix Sport vs. Yggdrazil Group Public | Warrix Sport vs. Yong Concrete PCL |
| Bank of Ayudhya vs. Bangkok Bank Public | Bank of Ayudhya vs. Krung Thai Bank | Bank of Ayudhya vs. SCB X Public | Bank of Ayudhya vs. Kasikornbank 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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