Correlation Between Thai Ha and Thai Union
Can any of the company-specific risk be diversified away by investing in both Thai Ha and Thai Union 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 Thai Ha and Thai Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Ha Public and Thai Union Group, you can compare the effects of market volatilities on Thai Ha and Thai Union 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 Thai Ha with a short position of Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Ha and Thai Union.
Diversification Opportunities for Thai Ha and Thai Union
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Thai is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Thai Ha Public and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group and Thai Ha 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 Thai Ha Public are associated (or correlated) with Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Thai Ha i.e., Thai Ha and Thai Union go up and down completely randomly.
Pair Corralation between Thai Ha and Thai Union
Assuming the 90 days trading horizon Thai Ha Public is expected to under-perform the Thai Union. In addition to that, Thai Ha is 1.77 times more volatile than Thai Union Group. It trades about -0.14 of its total potential returns per unit of risk. Thai Union Group is currently generating about -0.24 per unit of volatility. If you would invest 1,490 in Thai Union Group on September 13, 2024 and sell it today you would lose (180.00) from holding Thai Union Group or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Ha Public vs. Thai Union Group
Performance |
| Timeline |
| Thai Ha Public |
| Thai Union Group |
Thai Ha and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Ha and Thai Union
The main advantage of trading using opposite Thai Ha and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Ha position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union's long position.| Thai Ha vs. Thai Union Group | Thai Ha vs. Thai Union Group | Thai Ha vs. Thai President Foods | Thai Ha vs. Thai Vegetable Oil |
| Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public | Thai Union vs. Minor International Public | Thai Union vs. Advanced Info Service |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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