Correlation Between Sriracha Construction and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Sriracha Construction 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 Sriracha Construction and Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sriracha Construction Public and Thaifoods Group Public, you can compare the effects of market volatilities on Sriracha Construction 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 Sriracha Construction with a short position of Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sriracha Construction and Thaifoods Group.
Diversification Opportunities for Sriracha Construction and Thaifoods Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sriracha and Thaifoods is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sriracha Construction 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 Sriracha Construction 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 Sriracha Construction 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 Sriracha Construction i.e., Sriracha Construction and Thaifoods Group go up and down completely randomly.
Pair Corralation between Sriracha Construction and Thaifoods Group
Assuming the 90 days trading horizon Sriracha Construction Public is expected to under-perform the Thaifoods Group. In addition to that, Sriracha Construction is 1.34 times more volatile than Thaifoods Group Public. It trades about -0.04 of its total potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.02 per unit of volatility. If you would invest 500.00 in Thaifoods Group Public on August 25, 2024 and sell it today you would lose (124.00) from holding Thaifoods Group Public or give up 24.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sriracha Construction Public vs. Thaifoods Group Public
Performance |
| Timeline |
| Sriracha Construction |
| Thaifoods Group Public |
Sriracha Construction and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sriracha Construction and Thaifoods Group
The main advantage of trading using opposite Sriracha Construction and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sriracha Construction 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.| Sriracha Construction vs. Tata Steel Public | Sriracha Construction vs. Thaifoods Group Public | Sriracha Construction vs. TMT Steel Public | Sriracha Construction vs. The Erawan Group |
| Thaifoods Group vs. CP ALL Public | Thaifoods Group vs. Carabao Group Public | Thaifoods Group vs. Thai Union Group | Thaifoods Group vs. Minor International 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |