Correlation Between SERI INDUSTRIAL and TMBThanachart Bank

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

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

Diversification Opportunities for SERI INDUSTRIAL and TMBThanachart Bank

-0.45

Correlation Coefficient

SERI INDUSTRIAL  TMBThanachart Bank

Very good diversification

The 3 months correlation between SERI and TMBThanachart is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and TMBThanachart Bank go up and down completely randomly.

Pair Corralation between SERI INDUSTRIAL and TMBThanachart Bank

Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the TMBThanachart Bank. In addition to that, SERI INDUSTRIAL is 1.94 times more volatile than TMBThanachart Bank Public. It trades about -0.03 of its total potential returns per unit of risk. TMBThanachart Bank Public is currently generating about 0.05 per unit of volatility. If you would invest  4.80  in TMBThanachart Bank Public on October 23, 2024 and sell it today you would earn a total of  0.25  from holding TMBThanachart Bank Public or generate 5.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

SERI INDUSTRIAL EO  vs.  TMBThanachart Bank Public

SERI INDUSTRIAL EO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SERI INDUSTRIAL EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

TMBThanachart Bank Public

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TMBThanachart Bank Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TMBThanachart Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SERI INDUSTRIAL and TMBThanachart Bank

The main advantage of trading using opposite SERI INDUSTRIAL and TMBThanachart Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.