Correlation Between Firetrade Engineering and Thai Coating
Can any of the company-specific risk be diversified away by investing in both Firetrade Engineering and Thai Coating 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 Firetrade Engineering and Thai Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firetrade Engineering Public and Thai Coating Industrial, you can compare the effects of market volatilities on Firetrade Engineering and Thai Coating 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 Firetrade Engineering with a short position of Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firetrade Engineering and Thai Coating.
Diversification Opportunities for Firetrade Engineering and Thai Coating
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firetrade and Thai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Firetrade Engineering Public and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial and Firetrade Engineering 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 Firetrade Engineering Public are associated (or correlated) with Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Firetrade Engineering i.e., Firetrade Engineering and Thai Coating go up and down completely randomly.
Pair Corralation between Firetrade Engineering and Thai Coating
Assuming the 90 days trading horizon Firetrade Engineering Public is expected to generate 0.18 times more return on investment than Thai Coating. However, Firetrade Engineering Public is 5.51 times less risky than Thai Coating. It trades about 0.05 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about -0.13 per unit of risk. If you would invest 149.00 in Firetrade Engineering Public on October 21, 2024 and sell it today you would earn a total of 1.00 from holding Firetrade Engineering Public or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Firetrade Engineering Public vs. Thai Coating Industrial
Performance |
| Timeline |
| Firetrade Engineering |
| Thai Coating Industrial |
Firetrade Engineering and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firetrade Engineering and Thai Coating
The main advantage of trading using opposite Firetrade Engineering and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firetrade Engineering position performs unexpectedly, Thai Coating 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 Coating will offset losses from the drop in Thai Coating's long position.| Firetrade Engineering vs. Communication System Solution | Firetrade Engineering vs. Forth Public | Firetrade Engineering vs. Karmarts Public | Firetrade Engineering vs. Global Connections Public |
| Thai Coating vs. Asia Metal Public | Thai Coating vs. Chonburi Concrete Product | Thai Coating vs. Asia Plus Group | Thai Coating vs. CSP Steel Center |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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