Correlation Between Stock Exchange and Thantawan Industry
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Thantawan Industry 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 Thantawan Industry 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 Thantawan Industry Public, you can compare the effects of market volatilities on Stock Exchange and Thantawan Industry 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 Thantawan Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Thantawan Industry.
Diversification Opportunities for Stock Exchange and Thantawan Industry
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stock and Thantawan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Thantawan Industry Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thantawan Industry 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 Thantawan Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thantawan Industry Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Thantawan Industry go up and down completely randomly.
Pair Corralation between Stock Exchange and Thantawan Industry
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.8 times more return on investment than Thantawan Industry. However, Stock Exchange Of is 1.25 times less risky than Thantawan Industry. It trades about -0.09 of its potential returns per unit of risk. Thantawan Industry Public is currently generating about -0.09 per unit of risk. If you would invest 144,720 in Stock Exchange Of on August 31, 2024 and sell it today you would lose (1,919) from holding Stock Exchange Of or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Thantawan Industry Public
Performance |
| Timeline |
Stock Exchange and Thantawan Industry Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Thantawan Industry Public
Pair trading matchups for Thantawan Industry
Pair Trading with Stock Exchange and Thantawan Industry
The main advantage of trading using opposite Stock Exchange and Thantawan Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Thantawan Industry 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 Thantawan Industry will offset losses from the drop in Thantawan Industry's long position.| Stock Exchange vs. Jasmine Telecom Systems | Stock Exchange vs. TMBThanachart Bank Public | Stock Exchange vs. Information and Communication | Stock Exchange vs. TISCO Financial Group |
| Thantawan Industry vs. Thai Metal Drum | Thantawan Industry vs. Haad Thip Public | Thantawan Industry vs. Sahamitr Pressure Container | Thantawan Industry vs. Ratchthani Leasing 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |