Correlation Between Forth Public and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Forth Public 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 Forth Public and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forth Public and Bangkok Bank PCL, you can compare the effects of market volatilities on Forth Public 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 Forth Public with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forth Public and Bangkok Bank.
Diversification Opportunities for Forth Public and Bangkok Bank
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Forth and Bangkok is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Forth Public and Bangkok Bank PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank PCL and Forth Public 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 Forth Public 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 PCL has no effect on the direction of Forth Public i.e., Forth Public and Bangkok Bank go up and down completely randomly.
Pair Corralation between Forth Public and Bangkok Bank
Assuming the 90 days trading horizon Forth Public is expected to under-perform the Bangkok Bank. In addition to that, Forth Public is 1.39 times more volatile than Bangkok Bank PCL. It trades about -0.39 of its total potential returns per unit of risk. Bangkok Bank PCL is currently generating about 0.0 per unit of volatility. If you would invest 15,100 in Bangkok Bank PCL on December 30, 2024 and sell it today you would lose (100.00) from holding Bangkok Bank PCL or give up 0.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Forth Public vs. Bangkok Bank PCL
Performance |
Timeline |
Forth Public |
Bangkok Bank PCL |
Forth Public and Bangkok Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Forth Public and Bangkok Bank
The main advantage of trading using opposite Forth Public and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forth Public 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.Forth Public vs. HEMARAJ INDUSTRIAL PROPERTY | Forth Public vs. WHA Industrial Leasehold | Forth Public vs. Ingress Industrial Public | Forth Public vs. Thai Coating Industrial |
Bangkok Bank vs. SCB X Public | Bangkok Bank vs. Kasikornbank Public | Bangkok Bank vs. PTT Public | Bangkok Bank vs. The Siam Cement |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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