Correlation Between Bangkok Bank and MBK Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and MBK Public 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 Bangkok Bank and MBK Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Bank Public and MBK Public, you can compare the effects of market volatilities on Bangkok Bank and MBK Public 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 Bangkok Bank with a short position of MBK Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and MBK Public.
Diversification Opportunities for Bangkok Bank and MBK Public
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and MBK is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and MBK Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBK Public and Bangkok 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 Bangkok Bank Public are associated (or correlated) with MBK Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBK Public has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and MBK Public go up and down completely randomly.
Pair Corralation between Bangkok Bank and MBK Public
Assuming the 90 days trading horizon Bangkok Bank is expected to generate 1.34 times less return on investment than MBK Public. But when comparing it to its historical volatility, Bangkok Bank Public is 1.44 times less risky than MBK Public. It trades about 0.11 of its potential returns per unit of risk. MBK Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,591 in MBK Public on September 26, 2024 and sell it today you would earn a total of 359.00 from holding MBK Public or generate 22.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bangkok Bank Public vs. MBK Public
Performance |
Timeline |
Bangkok Bank Public |
MBK Public |
Bangkok Bank and MBK Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangkok Bank and MBK Public
The main advantage of trading using opposite Bangkok Bank and MBK Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, MBK Public 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 MBK Public will offset losses from the drop in MBK Public's long position.Bangkok Bank vs. SCB X Public | Bangkok Bank vs. Kasikornbank Public | Bangkok Bank vs. PTT Public | Bangkok Bank vs. The Siam Cement |
MBK Public vs. Bangkok Bank Public | MBK Public vs. The Siam Cement | MBK Public vs. PTT Public | MBK Public vs. SCB X 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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