Correlation Between TMBThanachart Bank and Jay Mart

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

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

Diversification Opportunities for TMBThanachart Bank and Jay Mart

-0.81

Correlation Coefficient

TMBThanachart Bank  Jay Mart

Pay attention - limited upside

The 3 months correlation between TMBThanachart and Jay is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Jay Mart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jay Mart Public and TMBThanachart 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 TMBThanachart Bank Public are associated (or correlated) with Jay Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jay Mart Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Jay Mart go up and down completely randomly.

Pair Corralation between TMBThanachart Bank and Jay Mart

Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.45 times more return on investment than Jay Mart. However, TMBThanachart Bank Public is 2.22 times less risky than Jay Mart. It trades about 0.15 of its potential returns per unit of risk. Jay Mart Public is currently generating about -0.19 per unit of risk. If you would invest  176.00  in TMBThanachart Bank Public on November 29, 2024 and sell it today you would earn a total of  20.00  from holding TMBThanachart Bank Public or generate 11.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.31%
Values	Daily Returns

TMBThanachart Bank Public  vs.  Jay Mart Public

TMBThanachart Bank Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TMBThanachart Bank Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, TMBThanachart Bank may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Jay Mart Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TMBThanachart Bank and Jay Mart

The main advantage of trading using opposite TMBThanachart Bank and Jay Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, Jay Mart 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 Jay Mart will offset losses from the drop in Jay Mart's long position.

The idea behind TMBThanachart Bank Public and Jay Mart 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.