Correlation Between Bank of Ayudhya and RPCG Public

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

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

Diversification Opportunities for Bank of Ayudhya and RPCG Public

0.11

Correlation Coefficient

Bank of Ayudhya  RPCG Public

Average diversification

The 3 months correlation between Bank and RPCG is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ayudhya and RPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPCG Public and Bank of Ayudhya 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 Bank of Ayudhya are associated (or correlated) with RPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPCG Public has no effect on the direction of Bank of Ayudhya i.e., Bank of Ayudhya and RPCG Public go up and down completely randomly.

Pair Corralation between Bank of Ayudhya and RPCG Public

Assuming the 90 days trading horizon Bank of Ayudhya is expected to generate 4.33 times less return on investment than RPCG Public. But when comparing it to its historical volatility, Bank of Ayudhya is 2.92 times less risky than RPCG Public. It trades about 0.04 of its potential returns per unit of risk. RPCG Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  27.00  in RPCG Public on April 24, 2025 and sell it today you would earn a total of  2.00  from holding RPCG Public or generate 7.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bank of Ayudhya  vs.  RPCG Public

Bank of Ayudhya

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Ayudhya are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Bank of Ayudhya is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

RPCG Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RPCG Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, RPCG Public may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bank of Ayudhya and RPCG Public

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

The idea behind Bank of Ayudhya and RPCG 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.