Correlation Between Thonburi Medical and Jack Chia
Can any of the company-specific risk be diversified away by investing in both Thonburi Medical and Jack Chia 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 Thonburi Medical and Jack Chia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thonburi Medical Centre and Jack Chia Industries, you can compare the effects of market volatilities on Thonburi Medical and Jack Chia 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 Thonburi Medical with a short position of Jack Chia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Medical and Jack Chia.
Diversification Opportunities for Thonburi Medical and Jack Chia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thonburi and Jack is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Medical Centre and Jack Chia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Chia Industries and Thonburi Medical 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 Thonburi Medical Centre are associated (or correlated) with Jack Chia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Chia Industries has no effect on the direction of Thonburi Medical i.e., Thonburi Medical and Jack Chia go up and down completely randomly.
Pair Corralation between Thonburi Medical and Jack Chia
Assuming the 90 days trading horizon Thonburi Medical Centre is expected to generate 2.89 times more return on investment than Jack Chia. However, Thonburi Medical is 2.89 times more volatile than Jack Chia Industries. It trades about 0.2 of its potential returns per unit of risk. Jack Chia Industries is currently generating about 0.09 per unit of risk. If you would invest 9,000 in Thonburi Medical Centre on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Thonburi Medical Centre or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thonburi Medical Centre vs. Jack Chia Industries
Performance |
| Timeline |
| Thonburi Medical Centre |
| Jack Chia Industries |
Thonburi Medical and Jack Chia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Medical and Jack Chia
The main advantage of trading using opposite Thonburi Medical and Jack Chia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Medical position performs unexpectedly, Jack Chia 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 Jack Chia will offset losses from the drop in Jack Chia's long position.| Thonburi Medical vs. AP Public | Thonburi Medical vs. Advanced Information Technology | Thonburi Medical vs. AJ Plast Public | Thonburi Medical vs. Berli Jucker Public |
| Jack Chia vs. MK Restaurant Group | Jack Chia vs. TRC Construction Public | Jack Chia vs. Bangkok Expressway and | Jack Chia vs. Lohakit Metal 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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