Correlation Between Zoom Video and TMBThanachart Bank
Can any of the company-specific risk be diversified away by investing in both Zoom Video and TMBThanachart 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 Zoom Video and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and TMBThanachart Bank Public, you can compare the effects of market volatilities on Zoom Video and TMBThanachart 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 Zoom Video with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and TMBThanachart Bank.
Diversification Opportunities for Zoom Video and TMBThanachart Bank
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zoom and TMBThanachart is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications and TMBThanachart Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMBThanachart Bank Public and Zoom Video 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 Zoom Video Communications are associated (or correlated) with TMBThanachart Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMBThanachart Bank Public has no effect on the direction of Zoom Video i.e., Zoom Video and TMBThanachart Bank go up and down completely randomly.
Pair Corralation between Zoom Video and TMBThanachart Bank
Assuming the 90 days trading horizon Zoom Video Communications is expected to generate 1.29 times more return on investment than TMBThanachart Bank. However, Zoom Video is 1.29 times more volatile than TMBThanachart Bank Public. It trades about 0.03 of its potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.04 per unit of risk. If you would invest 6,190 in Zoom Video Communications on October 11, 2024 and sell it today you would earn a total of 1,861 from holding Zoom Video Communications or generate 30.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Zoom Video Communications vs. TMBThanachart Bank Public
Performance |
Timeline |
Zoom Video Communications |
TMBThanachart Bank Public |
Zoom Video and TMBThanachart Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoom Video and TMBThanachart Bank
The main advantage of trading using opposite Zoom Video and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video position performs unexpectedly, TMBThanachart 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 TMBThanachart Bank will offset losses from the drop in TMBThanachart Bank's long position.Zoom Video vs. Jacquet Metal Service | Zoom Video vs. ARDAGH METAL PACDL 0001 | Zoom Video vs. Air Transport Services | Zoom Video vs. Nomad Foods |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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