Correlation Between TMBThanachart Bank and ATP 30

Can any of the company-specific risk be diversified away by investing in both TMBThanachart Bank and ATP 30 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 ATP 30 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 ATP 30 Public, you can compare the effects of market volatilities on TMBThanachart Bank and ATP 30 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 ATP 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMBThanachart Bank and ATP 30.

Diversification Opportunities for TMBThanachart Bank and ATP 30

-0.57

Correlation Coefficient

TMBThanachart Bank  ATP 30

Excellent diversification

The 12 months correlation between TMBThanachart and ATP is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding TMBThanachart Bank Public and ATP 30 Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATP 30 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 ATP 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATP 30 Public has no effect on the direction of TMBThanachart Bank i.e., TMBThanachart Bank and ATP 30 go up and down completely randomly.

Pair Corralation between TMBThanachart Bank and ATP 30

Assuming the 90 days trading horizon TMBThanachart Bank Public is expected to generate 0.52 times more return on investment than ATP 30. However, TMBThanachart Bank Public is 1.93 times less risky than ATP 30. It trades about 0.08 of its potential returns per unit of risk. ATP 30 Public is currently generating about 0.0 per unit of risk. If you would invest  156.00  in TMBThanachart Bank Public on February 6, 2024 and sell it today you would earn a total of  20.00  from holding TMBThanachart Bank Public or generate 12.82% return on investment over 90 days.

Time Period	12 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.16%
Values	Daily Returns

TMBThanachart Bank Public  vs.  ATP 30 Public

TMBThanachart Bank Public

Risk-Adjusted Performance

5 of 100

Very Weak

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 conflicting fundamental drivers, TMBThanachart Bank may actually be approaching a critical reversion point that can send shares even higher in June 2024.

ATP 30 Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATP 30 Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ATP 30 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TMBThanachart Bank and ATP 30

The main advantage of trading using opposite TMBThanachart Bank and ATP 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMBThanachart Bank position performs unexpectedly, ATP 30 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 ATP 30 will offset losses from the drop in ATP 30's long position.

The idea behind TMBThanachart Bank Public and ATP 30 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.