Correlation Between INDUSTRIAL MINERALS and TMBThanachart Bank

Can any of the company-specific risk be diversified away by investing in both INDUSTRIAL MINERALS 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 INDUSTRIAL MINERALS and TMBThanachart Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INDUSTRIAL MINERALS LTD and TMBThanachart Bank Public, you can compare the effects of market volatilities on INDUSTRIAL MINERALS 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 INDUSTRIAL MINERALS with a short position of TMBThanachart Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MINERALS and TMBThanachart Bank.

Diversification Opportunities for INDUSTRIAL MINERALS and TMBThanachart Bank

-0.04

Correlation Coefficient

INDUSTRIAL MINERALS  TMBThanachart Bank

Good diversification

The 3 months correlation between INDUSTRIAL and TMBThanachart is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MINERALS LTD 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 INDUSTRIAL MINERALS 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 INDUSTRIAL MINERALS LTD 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 INDUSTRIAL MINERALS i.e., INDUSTRIAL MINERALS and TMBThanachart Bank go up and down completely randomly.

Pair Corralation between INDUSTRIAL MINERALS and TMBThanachart Bank

Assuming the 90 days horizon INDUSTRIAL MINERALS LTD is expected to under-perform the TMBThanachart Bank. In addition to that, INDUSTRIAL MINERALS is 1.57 times more volatile than TMBThanachart Bank Public. It trades about -0.09 of its total potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.03 per unit of volatility. If you would invest  4.95  in TMBThanachart Bank Public on October 8, 2024 and sell it today you would earn a total of  0.05  from holding TMBThanachart Bank Public or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INDUSTRIAL MINERALS LTD  vs.  TMBThanachart Bank Public

INDUSTRIAL MINERALS LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDUSTRIAL MINERALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

TMBThanachart Bank Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TMBThanachart Bank Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, TMBThanachart Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with INDUSTRIAL MINERALS and TMBThanachart Bank

The main advantage of trading using opposite INDUSTRIAL MINERALS and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MINERALS 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.

The idea behind INDUSTRIAL MINERALS LTD and TMBThanachart Bank Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.