Correlation Between Premier Marketing and Tanachira Retail
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and Tanachira Retail 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 Premier Marketing and Tanachira Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and Tanachira Retail, you can compare the effects of market volatilities on Premier Marketing and Tanachira Retail 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 Premier Marketing with a short position of Tanachira Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and Tanachira Retail.
Diversification Opportunities for Premier Marketing and Tanachira Retail
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Premier and Tanachira is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and Tanachira Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanachira Retail and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with Tanachira Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanachira Retail has no effect on the direction of Premier Marketing i.e., Premier Marketing and Tanachira Retail go up and down completely randomly.
Pair Corralation between Premier Marketing and Tanachira Retail
Assuming the 90 days horizon Premier Marketing Public is expected to generate 0.22 times more return on investment than Tanachira Retail. However, Premier Marketing Public is 4.51 times less risky than Tanachira Retail. It trades about -0.24 of its potential returns per unit of risk. Tanachira Retail is currently generating about -0.07 per unit of risk. If you would invest 945.00 in Premier Marketing Public on September 14, 2024 and sell it today you would lose (40.00) from holding Premier Marketing Public or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Marketing Public vs. Tanachira Retail
Performance |
| Timeline |
| Premier Marketing Public |
| Tanachira Retail |
Premier Marketing and Tanachira Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and Tanachira Retail
The main advantage of trading using opposite Premier Marketing and Tanachira Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, Tanachira Retail 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 Tanachira Retail will offset losses from the drop in Tanachira Retail's long position.| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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