Correlation Between Stock Exchange and Thai Eastern
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Thai Eastern 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 Thai Eastern 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 Thai Eastern Group, you can compare the effects of market volatilities on Stock Exchange and Thai Eastern 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 Thai Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Thai Eastern.
Diversification Opportunities for Stock Exchange and Thai Eastern
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stock and Thai is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Thai Eastern Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Eastern Group 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 Thai Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Eastern Group has no effect on the direction of Stock Exchange i.e., Stock Exchange and Thai Eastern go up and down completely randomly.
Pair Corralation between Stock Exchange and Thai Eastern
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Thai Eastern. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 3.32 times less risky than Thai Eastern. The index trades about -0.06 of its potential returns per unit of risk. The Thai Eastern Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Thai Eastern Group on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Thai Eastern Group or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stock Exchange Of vs. Thai Eastern Group
Performance |
| Timeline |
Stock Exchange and Thai Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Thai Eastern Group
Pair trading matchups for Thai Eastern
Pair Trading with Stock Exchange and Thai Eastern
The main advantage of trading using opposite Stock Exchange and Thai Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Thai Eastern 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 Thai Eastern will offset losses from the drop in Thai Eastern's long position.| Stock Exchange vs. Bank of Ayudhya | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. DOHOME | Stock Exchange vs. Srinanaporn Marketing Public |
| Thai Eastern vs. Srinanaporn Marketing Public | Thai Eastern vs. Thaifoods Group Public | Thai Eastern vs. Clover Power PCL | Thai Eastern vs. GFPT 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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