Correlation Between Stock Exchange and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and Thanachart Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Thanachart Capital Public, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Thanachart Capital.
Diversification Opportunities for Stock Exchange and Thanachart Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stock and Thanachart is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of 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 Stock Exchange 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 Stock Exchange Of 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 Stock Exchange i.e., Stock Exchange and Thanachart Capital go up and down completely randomly.
Pair Corralation between Stock Exchange and Thanachart Capital
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Thanachart Capital. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 110.39 times less risky than Thanachart Capital. The index trades about -0.03 of its potential returns per unit of risk. The Thanachart Capital Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,230 in Thanachart Capital Public on September 4, 2024 and sell it today you would earn a total of 720.00 from holding Thanachart Capital Public or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Thanachart Capital Public
Performance |
| Timeline |
Stock Exchange and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Thanachart Capital Public
Pair trading matchups for Thanachart Capital
Pair Trading with Stock Exchange and Thanachart Capital
The main advantage of trading using opposite Stock Exchange and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. MFC Asset Management | Stock Exchange vs. Mena Transport Public | Stock Exchange vs. Lohakit Metal Public | Stock Exchange vs. Porn Prom Metal |
| Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. Supalai Public | Thanachart Capital vs. Thai Oil 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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