Correlation Between Thaitheparos Public and Sawang Export
Can any of the company-specific risk be diversified away by investing in both Thaitheparos Public and Sawang Export 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 Thaitheparos Public and Sawang Export into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaitheparos Public and Sawang Export Public, you can compare the effects of market volatilities on Thaitheparos Public and Sawang Export 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 Thaitheparos Public with a short position of Sawang Export. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaitheparos Public and Sawang Export.
Diversification Opportunities for Thaitheparos Public and Sawang Export
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thaitheparos and Sawang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Thaitheparos Public and Sawang Export Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sawang Export Public and Thaitheparos Public 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 Thaitheparos Public are associated (or correlated) with Sawang Export. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sawang Export Public has no effect on the direction of Thaitheparos Public i.e., Thaitheparos Public and Sawang Export go up and down completely randomly.
Pair Corralation between Thaitheparos Public and Sawang Export
Assuming the 90 days trading horizon Thaitheparos Public is expected to generate 1.0 times less return on investment than Sawang Export. But when comparing it to its historical volatility, Thaitheparos Public is 1.0 times less risky than Sawang Export. It trades about 0.08 of its potential returns per unit of risk. Sawang Export Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Sawang Export Public on September 3, 2024 and sell it today you would lose (130.00) from holding Sawang Export Public or give up 9.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaitheparos Public vs. Sawang Export Public
Performance |
| Timeline |
| Thaitheparos Public |
| Sawang Export Public |
Thaitheparos Public and Sawang Export Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaitheparos Public and Sawang Export
The main advantage of trading using opposite Thaitheparos Public and Sawang Export positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaitheparos Public position performs unexpectedly, Sawang Export 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 Sawang Export will offset losses from the drop in Sawang Export's long position.| Thaitheparos Public vs. Airports of Thailand | Thaitheparos Public vs. PTT Public | Thaitheparos Public vs. Bangkok Dusit Medical | Thaitheparos Public vs. Kasikornbank Public |
| Sawang Export vs. Sabina Public | Sawang Export vs. Rockworth Public | Sawang Export vs. Thaitheparos Public | Sawang Export vs. Sappe 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |