Correlation Between Erawan and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both Erawan 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 Erawan and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Erawan Group and Thanapiriya Public, you can compare the effects of market volatilities on Erawan 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 Erawan with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Thanapiriya Public.
Diversification Opportunities for Erawan and Thanapiriya Public
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Erawan and Thanapiriya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and Erawan 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 The Erawan Group 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 Erawan i.e., Erawan and Thanapiriya Public go up and down completely randomly.
Pair Corralation between Erawan and Thanapiriya Public
Assuming the 90 days trading horizon The Erawan Group is expected to under-perform the Thanapiriya Public. But the stock apears to be less risky and, when comparing its historical volatility, The Erawan Group is 1.1 times less risky than Thanapiriya Public. The stock trades about -0.05 of its potential returns per unit of risk. The Thanapiriya Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Thanapiriya Public on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Thanapiriya Public or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. Thanapiriya Public
Performance |
| Timeline |
| Erawan Group |
| Thanapiriya Public |
Erawan and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Thanapiriya Public
The main advantage of trading using opposite Erawan and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan 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.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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