Correlation Between Srisawad Power and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and TISCO Financial 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 Srisawad Power and TISCO Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and TISCO Financial Group, you can compare the effects of market volatilities on Srisawad Power and TISCO Financial 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 Srisawad Power with a short position of TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and TISCO Financial.
Diversification Opportunities for Srisawad Power and TISCO Financial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Srisawad and TISCO is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of Srisawad Power i.e., Srisawad Power and TISCO Financial go up and down completely randomly.
Pair Corralation between Srisawad Power and TISCO Financial
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 77.42 times more return on investment than TISCO Financial. However, Srisawad Power is 77.42 times more volatile than TISCO Financial Group. It trades about 0.04 of its potential returns per unit of risk. TISCO Financial Group is currently generating about 0.06 per unit of risk. If you would invest 4,284 in Srisawad Power 1979 on September 2, 2024 and sell it today you would lose (209.00) from holding Srisawad Power 1979 or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. TISCO Financial Group
Performance |
| Timeline |
| Srisawad Power 1979 |
| TISCO Financial Group |
Srisawad Power and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and TISCO Financial
The main advantage of trading using opposite Srisawad Power and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial's long position.| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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