Correlation Between Synergetic Auto and Thai Wacoal
Can any of the company-specific risk be diversified away by investing in both Synergetic Auto and Thai Wacoal 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 Synergetic Auto and Thai Wacoal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synergetic Auto Performance and Thai Wacoal Public, you can compare the effects of market volatilities on Synergetic Auto and Thai Wacoal 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 Synergetic Auto with a short position of Thai Wacoal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synergetic Auto and Thai Wacoal.
Diversification Opportunities for Synergetic Auto and Thai Wacoal
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Synergetic and Thai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Synergetic Auto Performance and Thai Wacoal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Wacoal Public and Synergetic Auto 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 Synergetic Auto Performance are associated (or correlated) with Thai Wacoal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Wacoal Public has no effect on the direction of Synergetic Auto i.e., Synergetic Auto and Thai Wacoal go up and down completely randomly.
Pair Corralation between Synergetic Auto and Thai Wacoal
Assuming the 90 days trading horizon Synergetic Auto is expected to generate 1.02 times less return on investment than Thai Wacoal. In addition to that, Synergetic Auto is 1.0 times more volatile than Thai Wacoal Public. It trades about 0.04 of its total potential returns per unit of risk. Thai Wacoal Public is currently generating about 0.04 per unit of volatility. If you would invest 3,287 in Thai Wacoal Public on September 14, 2024 and sell it today you would lose (712.00) from holding Thai Wacoal Public or give up 21.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Synergetic Auto Performance vs. Thai Wacoal Public
Performance |
| Timeline |
| Synergetic Auto Perf |
| Thai Wacoal Public |
Synergetic Auto and Thai Wacoal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synergetic Auto and Thai Wacoal
The main advantage of trading using opposite Synergetic Auto and Thai Wacoal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synergetic Auto position performs unexpectedly, Thai Wacoal 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 Thai Wacoal will offset losses from the drop in Thai Wacoal's long position.| Synergetic Auto vs. Tata Steel Public | Synergetic Auto vs. TTCL Public | Synergetic Auto vs. Thaifoods Group Public | Synergetic Auto vs. TMT Steel Public |
| Thai Wacoal vs. Union Pioneer Public | Thai Wacoal vs. Thanulux Public | Thai Wacoal vs. Union Plastic Public | Thai Wacoal vs. Thai Rayon Public |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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