Correlation Between Union Auction and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both Union Auction and Thanapiriya Public 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 Union Auction and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Auction Public and Thanapiriya Public, you can compare the effects of market volatilities on Union Auction and Thanapiriya Public 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 Union Auction with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Auction and Thanapiriya Public.
Diversification Opportunities for Union Auction and Thanapiriya Public
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Union and Thanapiriya is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Union Auction Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and Union Auction 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 Union Auction Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of Union Auction i.e., Union Auction and Thanapiriya Public go up and down completely randomly.
Pair Corralation between Union Auction and Thanapiriya Public
Assuming the 90 days trading horizon Union Auction Public is expected to under-perform the Thanapiriya Public. But the stock apears to be less risky and, when comparing its historical volatility, Union Auction Public is 1.76 times less risky than Thanapiriya Public. The stock trades about -0.45 of its potential returns per unit of risk. The Thanapiriya Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Thanapiriya Public on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Thanapiriya Public or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Auction Public vs. Thanapiriya Public
Performance |
| Timeline |
| Union Auction Public |
| Thanapiriya Public |
Union Auction and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Auction and Thanapiriya Public
The main advantage of trading using opposite Union Auction and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Auction position performs unexpectedly, Thanapiriya Public 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public's long position.| Union Auction vs. AP Public | Union Auction vs. Carabao Group Public | Union Auction vs. Forth Smart Service | Union Auction vs. Com7 PCL |
| Thanapiriya Public vs. S P V | Thanapiriya Public vs. Mega Lifesciences Public | Thanapiriya Public vs. TAC Consumer Public | Thanapiriya Public vs. Com7 PCL |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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