Correlation Between SiS Distribution and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both SiS Distribution and Thanapiriya Public 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 SiS Distribution and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiS Distribution Public and Thanapiriya Public, you can compare the effects of market volatilities on SiS Distribution and Thanapiriya Public 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 SiS Distribution with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiS Distribution and Thanapiriya Public.
Diversification Opportunities for SiS Distribution and Thanapiriya Public
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SiS and Thanapiriya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SiS Distribution Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and SiS Distribution 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 SiS Distribution Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of SiS Distribution i.e., SiS Distribution and Thanapiriya Public go up and down completely randomly.
Pair Corralation between SiS Distribution and Thanapiriya Public
Assuming the 90 days trading horizon SiS Distribution Public is expected to generate 2.13 times more return on investment than Thanapiriya Public. However, SiS Distribution is 2.13 times more volatile than Thanapiriya Public. It trades about 0.2 of its potential returns per unit of risk. Thanapiriya Public is currently generating about 0.07 per unit of risk. If you would invest 2,500 in SiS Distribution Public on August 29, 2024 and sell it today you would earn a total of 450.00 from holding SiS Distribution Public or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiS Distribution Public vs. Thanapiriya Public
Performance |
| Timeline |
| SiS Distribution Public |
| Thanapiriya Public |
SiS Distribution and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiS Distribution and Thanapiriya Public
The main advantage of trading using opposite SiS Distribution and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiS Distribution position performs unexpectedly, Thanapiriya Public 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public's long position.| SiS Distribution vs. AP Public | SiS Distribution vs. Jasmine International Public | SiS Distribution vs. Asia Plus Group | SiS Distribution vs. Bangkok Aviation Fuel |
| Thanapiriya Public vs. S P V | Thanapiriya Public vs. Mega Lifesciences Public | Thanapiriya Public vs. TAC Consumer Public | Thanapiriya Public vs. Com7 PCL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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