Correlation Between Italian Thai and TTCL Public
Can any of the company-specific risk be diversified away by investing in both Italian Thai and TTCL 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 Italian Thai and TTCL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Italian Thai Development Public and TTCL Public, you can compare the effects of market volatilities on Italian Thai and TTCL 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 Italian Thai with a short position of TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Italian Thai and TTCL Public.
Diversification Opportunities for Italian Thai and TTCL Public
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Italian and TTCL is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Italian Thai Development Publi and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL Public and Italian Thai 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 Italian Thai Development Public are associated (or correlated) with TTCL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTCL Public has no effect on the direction of Italian Thai i.e., Italian Thai and TTCL Public go up and down completely randomly.
Pair Corralation between Italian Thai and TTCL Public
Assuming the 90 days trading horizon Italian Thai Development Public is expected to generate 1.75 times more return on investment than TTCL Public. However, Italian Thai is 1.75 times more volatile than TTCL Public. It trades about -0.1 of its potential returns per unit of risk. TTCL Public is currently generating about -0.2 per unit of risk. If you would invest 65.00 in Italian Thai Development Public on September 12, 2024 and sell it today you would lose (13.00) from holding Italian Thai Development Public or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Italian Thai Development Publi vs. TTCL Public
Performance |
| Timeline |
| Italian Thai Develop |
| TTCL Public |
Italian Thai and TTCL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Italian Thai and TTCL Public
The main advantage of trading using opposite Italian Thai and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Italian Thai position performs unexpectedly, TTCL 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 TTCL Public will offset losses from the drop in TTCL Public's long position.| Italian Thai vs. CH Karnchang Public | Italian Thai vs. Krung Thai Bank | Italian Thai vs. Bangkok Bank Public |
| TTCL Public vs. WHA Public | TTCL Public vs. Italian Thai Development Public | TTCL Public vs. Jasmine 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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