Correlation Between Bangkok Bank and Baraboo Bancorporation

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

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

Diversification Opportunities for Bangkok Bank and Baraboo Bancorporation

0.02

Correlation Coefficient

Bangkok Bank  Baraboo Bancorporation

Significant diversification

The 3 months correlation between Bangkok and Baraboo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank PCL and Baraboo Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baraboo Bancorporation and Bangkok 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 Bangkok Bank PCL are associated (or correlated) with Baraboo Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baraboo Bancorporation has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Baraboo Bancorporation go up and down completely randomly.

Pair Corralation between Bangkok Bank and Baraboo Bancorporation

Assuming the 90 days horizon Bangkok Bank is expected to generate 2.18 times less return on investment than Baraboo Bancorporation. In addition to that, Bangkok Bank is 2.06 times more volatile than Baraboo Bancorporation. It trades about 0.02 of its total potential returns per unit of risk. Baraboo Bancorporation is currently generating about 0.08 per unit of volatility. If you would invest  397.00  in Baraboo Bancorporation on May 7, 2025 and sell it today you would earn a total of  33.00  from holding Baraboo Bancorporation or generate 8.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Bangkok Bank PCL  vs.  Baraboo Bancorp.

Bangkok Bank PCL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bangkok Bank PCL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Bangkok Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Baraboo Bancorporation

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Baraboo Bancorporation are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Baraboo Bancorporation may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bangkok Bank and Baraboo Bancorporation

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

The idea behind Bangkok Bank PCL and Baraboo Bancorporation 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.