Correlation Between Srinanaporn Marketing and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Srinanaporn Marketing and Thaifoods Group 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 Thaifoods Group 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 Thaifoods Group Public, you can compare the effects of market volatilities on Srinanaporn Marketing and Thaifoods Group 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srinanaporn Marketing and Thaifoods Group.
Diversification Opportunities for Srinanaporn Marketing and Thaifoods Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srinanaporn and Thaifoods is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Srinanaporn Marketing Public and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of Srinanaporn Marketing i.e., Srinanaporn Marketing and Thaifoods Group go up and down completely randomly.
Pair Corralation between Srinanaporn Marketing and Thaifoods Group
Assuming the 90 days trading horizon Srinanaporn Marketing Public is expected to under-perform the Thaifoods Group. In addition to that, Srinanaporn Marketing is 1.16 times more volatile than Thaifoods Group Public. It trades about -0.14 of its total potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.15 per unit of volatility. If you would invest 424.00 in Thaifoods Group Public on August 28, 2024 and sell it today you would lose (42.00) from holding Thaifoods Group Public or give up 9.91% 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. Thaifoods Group Public
Performance |
| Timeline |
| Srinanaporn Marketing |
| Thaifoods Group Public |
Srinanaporn Marketing and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srinanaporn Marketing and Thaifoods Group
The main advantage of trading using opposite Srinanaporn Marketing and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srinanaporn Marketing position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| Srinanaporn Marketing vs. Chamni Eye PCL | Srinanaporn Marketing vs. Siam Global House | Srinanaporn Marketing vs. The Erawan Group | Srinanaporn Marketing vs. Ditto 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 CEOs Directory module to screen CEOs from public companies around the world.
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