Correlation Between SiS Distribution and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both SiS Distribution and Thoresen Thai 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 Thoresen Thai 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 Thoresen Thai Agencies, you can compare the effects of market volatilities on SiS Distribution and Thoresen Thai 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 Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiS Distribution and Thoresen Thai.
Diversification Opportunities for SiS Distribution and Thoresen Thai
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SiS and Thoresen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SiS Distribution Public and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies 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 Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of SiS Distribution i.e., SiS Distribution and Thoresen Thai go up and down completely randomly.
Pair Corralation between SiS Distribution and Thoresen Thai
Assuming the 90 days trading horizon SiS Distribution Public is expected to generate 34.95 times more return on investment than Thoresen Thai. However, SiS Distribution is 34.95 times more volatile than Thoresen Thai Agencies. It trades about 0.08 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about -0.09 per unit of risk. If you would invest 2,850 in SiS Distribution Public on September 1, 2024 and sell it today you would earn a total of 75.00 from holding SiS Distribution Public or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiS Distribution Public vs. Thoresen Thai Agencies
Performance |
| Timeline |
| SiS Distribution Public |
| Thoresen Thai Agencies |
SiS Distribution and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiS Distribution and Thoresen Thai
The main advantage of trading using opposite SiS Distribution and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiS Distribution position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| SiS Distribution vs. Synnex Public | SiS Distribution vs. Hana Microelectronics Public | SiS Distribution vs. Singer Thailand Public | SiS Distribution vs. Jay Mart Public |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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