Correlation Between RB Food and Thitikorn Public
Can any of the company-specific risk be diversified away by investing in both RB Food and Thitikorn Public 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 Thitikorn Public 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 Thitikorn Public, you can compare the effects of market volatilities on RB Food and Thitikorn Public 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 Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Food and Thitikorn Public.
Diversification Opportunities for RB Food and Thitikorn Public
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBF and Thitikorn is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding RB Food Supply and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of RB Food i.e., RB Food and Thitikorn Public go up and down completely randomly.
Pair Corralation between RB Food and Thitikorn Public
Assuming the 90 days trading horizon RB Food Supply is expected to generate 2.7 times more return on investment than Thitikorn Public. However, RB Food is 2.7 times more volatile than Thitikorn Public. It trades about 0.29 of its potential returns per unit of risk. Thitikorn Public is currently generating about -0.1 per unit of risk. If you would invest 555.00 in RB Food Supply on September 4, 2024 and sell it today you would earn a total of 115.00 from holding RB Food Supply or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB Food Supply vs. Thitikorn Public
Performance |
| Timeline |
| RB Food Supply |
| Thitikorn Public |
RB Food and Thitikorn Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Food and Thitikorn Public
The main advantage of trading using opposite RB Food and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Food position performs unexpectedly, Thitikorn Public 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 Thitikorn Public will offset losses from the drop in Thitikorn Public's long position.| RB Food vs. Kingsmen CMTI Public | RB Food vs. Hydrotek Public | RB Food vs. Karmarts Public | RB Food vs. KC Metalsheet Public |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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