Correlation Between Haad Thip and Taokaenoi Food
Can any of the company-specific risk be diversified away by investing in both Haad Thip 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 Haad Thip and Taokaenoi Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and Taokaenoi Food Marketing, you can compare the effects of market volatilities on Haad Thip 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 Haad Thip with a short position of Taokaenoi Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Taokaenoi Food.
Diversification Opportunities for Haad Thip and Taokaenoi Food
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haad and Taokaenoi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public 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 Haad Thip 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 Haad Thip Public 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 Haad Thip i.e., Haad Thip and Taokaenoi Food go up and down completely randomly.
Pair Corralation between Haad Thip and Taokaenoi Food
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.61 times more return on investment than Taokaenoi Food. However, Haad Thip Public is 1.65 times less risky than Taokaenoi Food. It trades about -0.14 of its potential returns per unit of risk. Taokaenoi Food Marketing is currently generating about -0.43 per unit of risk. If you would invest 1,670 in Haad Thip Public on September 14, 2024 and sell it today you would lose (70.00) from holding Haad Thip Public or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Taokaenoi Food Marketing
Performance |
| Timeline |
| Haad Thip Public |
| Taokaenoi Food Marketing |
Haad Thip and Taokaenoi Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Taokaenoi Food
The main advantage of trading using opposite Haad Thip and Taokaenoi Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip 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.| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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