Correlation Between Srinanaporn Marketing and Thai Ha
Can any of the company-specific risk be diversified away by investing in both Srinanaporn Marketing and Thai Ha 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 Srinanaporn Marketing and Thai Ha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srinanaporn Marketing Public and Thai Ha Public, you can compare the effects of market volatilities on Srinanaporn Marketing and Thai Ha 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 Srinanaporn Marketing with a short position of Thai Ha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srinanaporn Marketing and Thai Ha.
Diversification Opportunities for Srinanaporn Marketing and Thai Ha
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srinanaporn and Thai is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Srinanaporn Marketing Public and Thai Ha Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Ha Public and Srinanaporn Marketing 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 Srinanaporn Marketing Public are associated (or correlated) with Thai Ha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Ha Public has no effect on the direction of Srinanaporn Marketing i.e., Srinanaporn Marketing and Thai Ha go up and down completely randomly.
Pair Corralation between Srinanaporn Marketing and Thai Ha
Assuming the 90 days trading horizon Srinanaporn Marketing Public is expected to generate 0.85 times more return on investment than Thai Ha. However, Srinanaporn Marketing Public is 1.18 times less risky than Thai Ha. It trades about -0.06 of its potential returns per unit of risk. Thai Ha Public is currently generating about -0.14 per unit of risk. If you would invest 1,260 in Srinanaporn Marketing Public on September 13, 2024 and sell it today you would lose (70.00) from holding Srinanaporn Marketing Public or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srinanaporn Marketing Public vs. Thai Ha Public
Performance |
| Timeline |
| Srinanaporn Marketing |
| Thai Ha Public |
Srinanaporn Marketing and Thai Ha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srinanaporn Marketing and Thai Ha
The main advantage of trading using opposite Srinanaporn Marketing and Thai Ha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srinanaporn Marketing position performs unexpectedly, Thai Ha 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 Thai Ha will offset losses from the drop in Thai Ha's long position.| Srinanaporn Marketing vs. Sappe Public | Srinanaporn Marketing vs. Osotspa Public | Srinanaporn Marketing vs. RB Food Supply | Srinanaporn Marketing vs. Sabuy Technology Public |
| Thai Ha vs. Thai Union Group | Thai Ha vs. Thai Union Group | Thai Ha vs. Thai President Foods | Thai Ha vs. Thai Vegetable Oil |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |