Correlation Between Thonburi Medical and NSL Foods
Can any of the company-specific risk be diversified away by investing in both Thonburi Medical and NSL Foods 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 NSL Foods 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 NSL Foods Public, you can compare the effects of market volatilities on Thonburi Medical and NSL Foods 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 NSL Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Medical and NSL Foods.
Diversification Opportunities for Thonburi Medical and NSL Foods
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thonburi and NSL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Medical Centre and NSL Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSL Foods Public 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 NSL Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSL Foods Public has no effect on the direction of Thonburi Medical i.e., Thonburi Medical and NSL Foods go up and down completely randomly.
Pair Corralation between Thonburi Medical and NSL Foods
Assuming the 90 days trading horizon Thonburi Medical Centre is expected to generate 20.31 times more return on investment than NSL Foods. However, Thonburi Medical is 20.31 times more volatile than NSL Foods Public. It trades about 0.04 of its potential returns per unit of risk. NSL Foods Public is currently generating about 0.05 per unit of risk. If you would invest 8,978 in Thonburi Medical Centre on September 14, 2024 and sell it today you would earn a total of 472.00 from holding Thonburi Medical Centre or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thonburi Medical Centre vs. NSL Foods Public
Performance |
| Timeline |
| Thonburi Medical Centre |
| NSL Foods Public |
Thonburi Medical and NSL Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Medical and NSL Foods
The main advantage of trading using opposite Thonburi Medical and NSL Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Medical position performs unexpectedly, NSL Foods 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 NSL Foods will offset losses from the drop in NSL Foods' long position.| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital Public |
| NSL Foods vs. S Khonkaen Foods | NSL Foods vs. CHAOSUA FOODS INDUSTRY | NSL Foods vs. Digital Telecommunications Infrastructure | NSL Foods vs. PTT OIL RETAIL |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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