Correlation Between Chonburi Concrete and Thantawan Industry
Can any of the company-specific risk be diversified away by investing in both Chonburi Concrete and Thantawan Industry 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 Chonburi Concrete and Thantawan Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chonburi Concrete Product and Thantawan Industry Public, you can compare the effects of market volatilities on Chonburi Concrete and Thantawan Industry 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 Chonburi Concrete with a short position of Thantawan Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chonburi Concrete and Thantawan Industry.
Diversification Opportunities for Chonburi Concrete and Thantawan Industry
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chonburi and Thantawan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Chonburi Concrete Product and Thantawan Industry Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thantawan Industry Public and Chonburi Concrete 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 Chonburi Concrete Product are associated (or correlated) with Thantawan Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thantawan Industry Public has no effect on the direction of Chonburi Concrete i.e., Chonburi Concrete and Thantawan Industry go up and down completely randomly.
Pair Corralation between Chonburi Concrete and Thantawan Industry
Assuming the 90 days trading horizon Chonburi Concrete Product is expected to under-perform the Thantawan Industry. In addition to that, Chonburi Concrete is 3.41 times more volatile than Thantawan Industry Public. It trades about -0.05 of its total potential returns per unit of risk. Thantawan Industry Public is currently generating about -0.05 per unit of volatility. If you would invest 2,925 in Thantawan Industry Public on September 13, 2024 and sell it today you would lose (25.00) from holding Thantawan Industry Public or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chonburi Concrete Product vs. Thantawan Industry Public
Performance |
| Timeline |
| Chonburi Concrete Product |
| Thantawan Industry Public |
Chonburi Concrete and Thantawan Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chonburi Concrete and Thantawan Industry
The main advantage of trading using opposite Chonburi Concrete and Thantawan Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chonburi Concrete position performs unexpectedly, Thantawan Industry 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 Thantawan Industry will offset losses from the drop in Thantawan Industry's long position.| Chonburi Concrete vs. Thantawan Industry Public | Chonburi Concrete vs. The Erawan Group | Chonburi Concrete vs. Jay Mart Public | Chonburi Concrete vs. Airports of Thailand |
| Thantawan Industry vs. The Erawan Group | Thantawan Industry vs. Jay Mart Public | Thantawan Industry vs. Airports of Thailand | Thantawan Industry vs. Eastern Technical Engineering |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |