Correlation Between Stock Exchange and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and TISCO Financial 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 TISCO Financial Group, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and TISCO Financial.
Diversification Opportunities for Stock Exchange and TISCO Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stock and TISCO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of 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 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 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 Stock Exchange i.e., Stock Exchange and TISCO Financial go up and down completely randomly.
Pair Corralation between Stock Exchange and TISCO Financial
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the TISCO Financial. In addition to that, Stock Exchange is 1.21 times more volatile than TISCO Financial Group. It trades about -0.03 of its total potential returns per unit of risk. TISCO Financial Group is currently generating about 0.06 per unit of volatility. If you would invest 8,243 in TISCO Financial Group on September 2, 2024 and sell it today you would earn a total of 1,407 from holding TISCO Financial Group or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. TISCO Financial Group
Performance |
| Timeline |
Stock Exchange and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
TISCO Financial Group
Pair trading matchups for TISCO Financial
Pair Trading with Stock Exchange and TISCO Financial
The main advantage of trading using opposite Stock Exchange and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. Central Retail | Stock Exchange vs. Interlink Communication Public | Stock Exchange vs. NSL Foods Public | Stock Exchange vs. Central Plaza Hotel |
| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| 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 | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |