Correlation Between TMBThanachart Bank and Thitikorn Public

Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and Thitikorn 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 TMBThanachart Bank and Thitikorn Public 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 Thitikorn Public, you can compare the effects of market volatilities on TMBThanachart Bank and Thitikorn 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 TMBThanachart Bank with a short position of Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and Thitikorn Public.

Diversification Opportunities for TMBThanachart Bank and Thitikorn Public

-0.38

Correlation Coefficient

TMBThanachart Bank  Thitikorn Public

Very good diversification

The 3 months correlation between TMBThanachart and Thitikorn is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and Thitikorn Public go up and down completely randomly.

Pair Corralation between TMBThanachart Bank and Thitikorn Public

Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.91 times more return on investment than Thitikorn Public. However, TMBThanachart Bank Public is 1.1 times less risky than Thitikorn Public. It trades about 0.08 of its potential returns per unit of risk. Thitikorn Public is currently generating about -0.28 per unit of risk. If you would invest  178.00  in TMBThanachart Bank Public on October 26, 2024 and sell it today you would earn a total of  9.00  from holding TMBThanachart Bank Public or generate 5.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

TMBThanachart Bank Public  vs.  Thitikorn Public

TMBThanachart Bank Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TMBThanachart Bank Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, TMBThanachart Bank is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Thitikorn Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thitikorn 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 quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with TMBThanachart Bank and Thitikorn Public

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

The idea behind TMBThanachart Bank Public and Thitikorn 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.