Correlation Between Asian Sea and Thai Mitsuwa
Can any of the company-specific risk be diversified away by investing in both Asian Sea and Thai Mitsuwa 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 Asian Sea and Thai Mitsuwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asian Sea and Thai Mitsuwa Public, you can compare the effects of market volatilities on Asian Sea and Thai Mitsuwa 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 Asian Sea with a short position of Thai Mitsuwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Sea and Thai Mitsuwa.
Diversification Opportunities for Asian Sea and Thai Mitsuwa
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asian and Thai is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Asian Sea and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa Public and Asian Sea 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 Asian Sea are associated (or correlated) with Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of Asian Sea i.e., Asian Sea and Thai Mitsuwa go up and down completely randomly.
Pair Corralation between Asian Sea and Thai Mitsuwa
Assuming the 90 days trading horizon Asian Sea is expected to generate 21.78 times less return on investment than Thai Mitsuwa. But when comparing it to its historical volatility, Asian Sea is 26.48 times less risky than Thai Mitsuwa. It trades about 0.08 of its potential returns per unit of risk. Thai Mitsuwa Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,331 in Thai Mitsuwa Public on September 1, 2024 and sell it today you would earn a total of 919.00 from holding Thai Mitsuwa Public or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Sea vs. Thai Mitsuwa Public
Performance |
| Timeline |
| Asian Sea |
| Thai Mitsuwa Public |
Asian Sea and Thai Mitsuwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Sea and Thai Mitsuwa
The main advantage of trading using opposite Asian Sea and Thai Mitsuwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Sea position performs unexpectedly, Thai Mitsuwa 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 Mitsuwa will offset losses from the drop in Thai Mitsuwa's long position.| Asian Sea vs. GFPT Public | Asian Sea vs. Carabao Group Public | Asian Sea vs. Thai Union Group | Asian Sea vs. Agripure Holdings Public |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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