Correlation Between LG Display and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both LG Display and Thoresen Thai 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 LG Display and Thoresen Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display Co and Thoresen Thai Agencies, you can compare the effects of market volatilities on LG Display and Thoresen Thai 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 LG Display with a short position of Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Thoresen Thai.
Diversification Opportunities for LG Display and Thoresen Thai
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between LGA and Thoresen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies and LG Display 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 LG Display Co are associated (or correlated) with Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of LG Display i.e., LG Display and Thoresen Thai go up and down completely randomly.
Pair Corralation between LG Display and Thoresen Thai
Assuming the 90 days horizon LG Display Co is expected to under-perform the Thoresen Thai. But the stock apears to be less risky and, when comparing its historical volatility, LG Display Co is 1.67 times less risky than Thoresen Thai. The stock trades about -0.03 of its potential returns per unit of risk. The Thoresen Thai Agencies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Thoresen Thai Agencies on September 19, 2024 and sell it today you would lose (8.00) from holding Thoresen Thai Agencies or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display Co vs. Thoresen Thai Agencies
Performance |
| Timeline |
| LG Display |
| Thoresen Thai Agencies |
LG Display and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Thoresen Thai
The main advantage of trading using opposite LG Display and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| LG Display vs. Samsung Electronics Co | LG Display vs. Superior Plus Corp | LG Display vs. SIVERS SEMICONDUCTORS AB | LG Display vs. Norsk Hydro ASA |
| Thoresen Thai vs. THAI BEVERAGE | Thoresen Thai vs. PARKEN Sport Entertainment | Thoresen Thai vs. PT Global Mediacom | Thoresen Thai vs. LG Display Co |
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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