Correlation Between Srinanaporn Marketing and Thai Union
Can any of the company-specific risk be diversified away by investing in both Srinanaporn Marketing and Thai Union 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 Union 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 Union Group, you can compare the effects of market volatilities on Srinanaporn Marketing and Thai Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srinanaporn Marketing and Thai Union.
Diversification Opportunities for Srinanaporn Marketing and Thai Union
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Srinanaporn and Thai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Srinanaporn Marketing Public and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group 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 Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Srinanaporn Marketing i.e., Srinanaporn Marketing and Thai Union go up and down completely randomly.
Pair Corralation between Srinanaporn Marketing and Thai Union
Assuming the 90 days trading horizon Srinanaporn Marketing is expected to generate 336.88 times less return on investment than Thai Union. But when comparing it to its historical volatility, Srinanaporn Marketing Public is 64.93 times less risky than Thai Union. It trades about 0.02 of its potential returns per unit of risk. Thai Union Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Thai Union Group on October 21, 2024 and sell it today you would lose (61.00) from holding Thai Union Group or give up 4.69% 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 Union Group
Performance |
| Timeline |
| Srinanaporn Marketing |
| Thai Union Group |
Srinanaporn Marketing and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srinanaporn Marketing and Thai Union
The main advantage of trading using opposite Srinanaporn Marketing and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srinanaporn Marketing position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union'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 Union vs. Krung Thai Bank | Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public | Thai Union vs. Thai Union 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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