Correlation Between Univentures Public and Bangkok Bank

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

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

Diversification Opportunities for Univentures Public and Bangkok Bank

0.68

Correlation Coefficient

Univentures Public  Bangkok Bank

Poor diversification

The 3 months correlation between Univentures and Bangkok is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Univentures Public and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Univentures Public 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 Univentures Public are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Univentures Public i.e., Univentures Public and Bangkok Bank go up and down completely randomly.

Pair Corralation between Univentures Public and Bangkok Bank

Assuming the 90 days horizon Univentures Public is expected to under-perform the Bangkok Bank. In addition to that, Univentures Public is 2.53 times more volatile than Bangkok Bank Public. It trades about -0.01 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.09 per unit of volatility. If you would invest  14,850  in Bangkok Bank Public on September 25, 2024 and sell it today you would earn a total of  200.00  from holding Bangkok Bank Public or generate 1.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Univentures Public  vs.  Bangkok Bank Public

Univentures Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Univentures 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 January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bangkok Bank Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Bank Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Bangkok Bank is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Univentures Public and Bangkok Bank

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

The idea behind Univentures Public and Bangkok 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.