Correlation Between Com7 PCL and Taokaenoi Food
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and Taokaenoi Food 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 Com7 PCL and Taokaenoi Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and Taokaenoi Food Marketing, you can compare the effects of market volatilities on Com7 PCL and Taokaenoi Food 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 Com7 PCL with a short position of Taokaenoi Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and Taokaenoi Food.
Diversification Opportunities for Com7 PCL and Taokaenoi Food
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Com7 and Taokaenoi is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and Taokaenoi Food Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taokaenoi Food Marketing and Com7 PCL 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 Com7 PCL are associated (or correlated) with Taokaenoi Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taokaenoi Food Marketing has no effect on the direction of Com7 PCL i.e., Com7 PCL and Taokaenoi Food go up and down completely randomly.
Pair Corralation between Com7 PCL and Taokaenoi Food
Assuming the 90 days trading horizon Com7 PCL is expected to generate 1.09 times more return on investment than Taokaenoi Food. However, Com7 PCL is 1.09 times more volatile than Taokaenoi Food Marketing. It trades about -0.05 of its potential returns per unit of risk. Taokaenoi Food Marketing is currently generating about -0.39 per unit of risk. If you would invest 2,750 in Com7 PCL on September 3, 2024 and sell it today you would lose (100.00) from holding Com7 PCL or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. Taokaenoi Food Marketing
Performance |
| Timeline |
| Com7 PCL |
| Taokaenoi Food Marketing |
Com7 PCL and Taokaenoi Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and Taokaenoi Food
The main advantage of trading using opposite Com7 PCL and Taokaenoi Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, Taokaenoi Food 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 Taokaenoi Food will offset losses from the drop in Taokaenoi Food's long position.| Com7 PCL vs. Central Pattana Public | Com7 PCL vs. CP ALL Public | Com7 PCL vs. Bangkok Dusit Medical | Com7 PCL vs. Airports of Thailand |
| Taokaenoi Food vs. CP ALL Public | Taokaenoi Food vs. Carabao Group Public | Taokaenoi Food vs. Thai Union Group | Taokaenoi Food vs. Minor International 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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