Correlation Between Srinanaporn Marketing and Thai President
Can any of the company-specific risk be diversified away by investing in both Srinanaporn Marketing and Thai President 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 President 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 President Foods, you can compare the effects of market volatilities on Srinanaporn Marketing and Thai President 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 President. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srinanaporn Marketing and Thai President.
Diversification Opportunities for Srinanaporn Marketing and Thai President
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Srinanaporn and Thai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Srinanaporn Marketing Public and Thai President Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai President Foods 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 President. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai President Foods has no effect on the direction of Srinanaporn Marketing i.e., Srinanaporn Marketing and Thai President go up and down completely randomly.
Pair Corralation between Srinanaporn Marketing and Thai President
Assuming the 90 days trading horizon Srinanaporn Marketing Public is expected to under-perform the Thai President. In addition to that, Srinanaporn Marketing is 6.22 times more volatile than Thai President Foods. It trades about -0.07 of its total potential returns per unit of risk. Thai President Foods is currently generating about -0.16 per unit of volatility. If you would invest 20,100 in Thai President Foods on September 12, 2024 and sell it today you would lose (250.00) from holding Thai President Foods or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srinanaporn Marketing Public vs. Thai President Foods
Performance |
| Timeline |
| Srinanaporn Marketing |
| Thai President Foods |
Srinanaporn Marketing and Thai President Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srinanaporn Marketing and Thai President
The main advantage of trading using opposite Srinanaporn Marketing and Thai President positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srinanaporn Marketing position performs unexpectedly, Thai President 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 President will offset losses from the drop in Thai President's long position.| Srinanaporn Marketing vs. Thai Union Group | Srinanaporn Marketing vs. Thai Union Group | Srinanaporn Marketing vs. Thai President Foods | Srinanaporn Marketing vs. Thai Vegetable Oil |
| Thai President vs. GFPT Public | Thai President vs. Dynasty Ceramic Public | Thai President vs. Haad Thip Public | Thai President vs. The Erawan Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |