Correlation Between Bangkok Dusit and Amalgamated Bank
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Amalgamated 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 Bangkok Dusit and Amalgamated Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Amalgamated Bank, you can compare the effects of market volatilities on Bangkok Dusit and Amalgamated 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 Bangkok Dusit with a short position of Amalgamated Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Amalgamated Bank.
Diversification Opportunities for Bangkok Dusit and Amalgamated Bank
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Amalgamated is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Amalgamated Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amalgamated Bank and Bangkok Dusit 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 Bangkok Dusit Medical are associated (or correlated) with Amalgamated Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amalgamated Bank has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Amalgamated Bank go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Amalgamated Bank
Assuming the 90 days horizon Bangkok Dusit Medical is expected to under-perform the Amalgamated Bank. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 1.69 times less risky than Amalgamated Bank. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Amalgamated Bank is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,896 in Amalgamated Bank on August 28, 2025 and sell it today you would earn a total of 62.00 from holding Amalgamated Bank or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Amalgamated Bank
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Amalgamated Bank |
Bangkok Dusit and Amalgamated Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Amalgamated Bank
The main advantage of trading using opposite Bangkok Dusit and Amalgamated Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Amalgamated 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 Amalgamated Bank will offset losses from the drop in Amalgamated Bank's long position.| Bangkok Dusit vs. JD Health International | Bangkok Dusit vs. JD Health International | Bangkok Dusit vs. Fresenius SE Co | Bangkok Dusit vs. Fresenius SE Co |
| Amalgamated Bank vs. China Petroleum Chemical | Amalgamated Bank vs. Quaker Chemical | Amalgamated Bank vs. ISE Chemicals | Amalgamated Bank vs. On4 Communications |
Check out your portfolio center.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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