Correlation Between Ford and Thaicom Public
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By analyzing existing cross correlation between Ford Motor and Thaicom Public, you can compare the effects of market volatilities on Ford and Thaicom 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 Ford with a short position of Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Thaicom Public.
Diversification Opportunities for Ford and Thaicom Public
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ford and Thaicom is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom Public and Ford 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 Ford Motor are associated (or correlated) with Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of Ford i.e., Ford and Thaicom Public go up and down completely randomly.
Pair Corralation between Ford and Thaicom Public
Taking into account the 90-day investment horizon Ford is expected to generate 81.86 times less return on investment than Thaicom Public. But when comparing it to its historical volatility, Ford Motor is 28.64 times less risky than Thaicom Public. It trades about 0.02 of its potential returns per unit of risk. Thaicom Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,332 in Thaicom Public on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Thaicom Public or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Ford Motor vs. Thaicom Public
Performance |
| Timeline |
| Ford Motor |
| Thaicom Public |
Ford and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Thaicom Public
The main advantage of trading using opposite Ford and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Thaicom 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 Thaicom Public will offset losses from the drop in Thaicom Public's long position.The idea behind Ford Motor and Thaicom Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thaicom Public vs. Siri Prime Office | Thaicom Public vs. Quality Houses Property | Thaicom Public vs. The Erawan Group | Thaicom Public vs. Jay Mart 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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