Correlation Between RB Food and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both RB Food and Thanachart Capital 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 RB Food and Thanachart Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Food Supply and Thanachart Capital Public, you can compare the effects of market volatilities on RB Food and Thanachart Capital 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 RB Food with a short position of Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Food and Thanachart Capital.
Diversification Opportunities for RB Food and Thanachart Capital
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RBF and Thanachart is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding RB Food Supply and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public and RB Food 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 RB Food Supply are associated (or correlated) with Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of RB Food i.e., RB Food and Thanachart Capital go up and down completely randomly.
Pair Corralation between RB Food and Thanachart Capital
Assuming the 90 days trading horizon RB Food Supply is expected to generate 3.2 times more return on investment than Thanachart Capital. However, RB Food is 3.2 times more volatile than Thanachart Capital Public. It trades about 0.46 of its potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.0 per unit of risk. If you would invest 520.00 in RB Food Supply on September 13, 2024 and sell it today you would earn a total of 165.00 from holding RB Food Supply or generate 31.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB Food Supply vs. Thanachart Capital Public
Performance |
| Timeline |
| RB Food Supply |
| Thanachart Capital Public |
RB Food and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Food and Thanachart Capital
The main advantage of trading using opposite RB Food and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Food position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital's long position.| RB Food vs. Thai Union Group | RB Food vs. Thai Union Group | RB Food vs. Thai President Foods | RB Food vs. Thai Vegetable Oil |
| Thanachart Capital vs. TISCO Financial Group | Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. SCB X Public | Thanachart Capital vs. Kasikornbank 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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