Correlation Between Ditto Public and Thai Union
Can any of the company-specific risk be diversified away by investing in both Ditto Public and Thai Union 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 Ditto Public and Thai Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ditto Public and Thai Union Group, you can compare the effects of market volatilities on Ditto Public and Thai Union 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 Ditto Public with a short position of Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ditto Public and Thai Union.
Diversification Opportunities for Ditto Public and Thai Union
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ditto and Thai is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ditto Public and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group and Ditto Public 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 Ditto Public are associated (or correlated) with Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Ditto Public i.e., Ditto Public and Thai Union go up and down completely randomly.
Pair Corralation between Ditto Public and Thai Union
Assuming the 90 days trading horizon Ditto Public is expected to under-perform the Thai Union. But the stock apears to be less risky and, when comparing its historical volatility, Ditto Public is 17.87 times less risky than Thai Union. The stock trades about -0.05 of its potential returns per unit of risk. The Thai Union Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,691 in Thai Union Group on August 29, 2024 and sell it today you would lose (311.00) from holding Thai Union Group or give up 18.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ditto Public vs. Thai Union Group
Performance |
| Timeline |
| Ditto Public |
| Thai Union Group |
Ditto Public and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ditto Public and Thai Union
The main advantage of trading using opposite Ditto Public and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ditto Public position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union's long position.| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics Public |
| Thai Union vs. Carabao Group Public | Thai Union vs. Jay Mart Public | Thai Union vs. Gulf Energy Development | Thai Union vs. KCE Electronics 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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