Correlation Between Sahamit Machinery and Thonburi Medical
Can any of the company-specific risk be diversified away by investing in both Sahamit Machinery and Thonburi Medical 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 Sahamit Machinery and Thonburi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sahamit Machinery Public and Thonburi Medical Centre, you can compare the effects of market volatilities on Sahamit Machinery and Thonburi Medical 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 Sahamit Machinery with a short position of Thonburi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamit Machinery and Thonburi Medical.
Diversification Opportunities for Sahamit Machinery and Thonburi Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sahamit and Thonburi is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sahamit Machinery Public and Thonburi Medical Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thonburi Medical Centre and Sahamit Machinery 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 Sahamit Machinery Public are associated (or correlated) with Thonburi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thonburi Medical Centre has no effect on the direction of Sahamit Machinery i.e., Sahamit Machinery and Thonburi Medical go up and down completely randomly.
Pair Corralation between Sahamit Machinery and Thonburi Medical
Assuming the 90 days trading horizon Sahamit Machinery is expected to generate 1.02 times less return on investment than Thonburi Medical. But when comparing it to its historical volatility, Sahamit Machinery Public is 1.0 times less risky than Thonburi Medical. It trades about 0.04 of its potential returns per unit of risk. Thonburi Medical Centre is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,978 in Thonburi Medical Centre on September 14, 2024 and sell it today you would earn a total of 472.00 from holding Thonburi Medical Centre or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahamit Machinery Public vs. Thonburi Medical Centre
Performance |
| Timeline |
| Sahamit Machinery Public |
| Thonburi Medical Centre |
Sahamit Machinery and Thonburi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamit Machinery and Thonburi Medical
The main advantage of trading using opposite Sahamit Machinery and Thonburi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamit Machinery position performs unexpectedly, Thonburi Medical 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 Thonburi Medical will offset losses from the drop in Thonburi Medical's long position.| Sahamit Machinery vs. MCS Steel Public | Sahamit Machinery vs. Somboon Advance Technology | Sahamit Machinery vs. Lohakit Metal Public | Sahamit Machinery vs. SNC Former Public |
| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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