Correlation Between Bangkok Dusit and Transdigm Group
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Transdigm Group 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 Transdigm Group 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 Transdigm Group Incorporated, you can compare the effects of market volatilities on Bangkok Dusit and Transdigm Group 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 Transdigm Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Transdigm Group.
Diversification Opportunities for Bangkok Dusit and Transdigm Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangkok and Transdigm is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Transdigm Group Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transdigm Group 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 Transdigm Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transdigm Group has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Transdigm Group go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Transdigm Group
Assuming the 90 days horizon Bangkok Dusit Medical is expected to under-perform the Transdigm Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 1.16 times less risky than Transdigm Group. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Transdigm Group Incorporated is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 129,330 in Transdigm Group Incorporated on September 11, 2025 and sell it today you would earn a total of 5,387 from holding Transdigm Group Incorporated or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Transdigm Group Incorporated
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Transdigm Group |
Bangkok Dusit and Transdigm Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Transdigm Group
The main advantage of trading using opposite Bangkok Dusit and Transdigm Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Transdigm Group 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 Transdigm Group will offset losses from the drop in Transdigm Group's long position.| Bangkok Dusit vs. Pharmacom Biovet | Bangkok Dusit vs. American Mobile Dental | Bangkok Dusit vs. DATATRAK International | Bangkok Dusit vs. Cyduct Diagnostics |
| Transdigm Group vs. Northrop Grumman | Transdigm Group vs. Johnson Controls International | Transdigm Group vs. Cintas | Transdigm Group vs. Vertiv Holdings Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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