Correlation Between Thai Stanley and TMT Steel
Can any of the company-specific risk be diversified away by investing in both Thai Stanley and TMT Steel 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 Thai Stanley and TMT Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Stanley Electric and TMT Steel Public, you can compare the effects of market volatilities on Thai Stanley and TMT Steel 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 Thai Stanley with a short position of TMT Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Stanley and TMT Steel.
Diversification Opportunities for Thai Stanley and TMT Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and TMT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Stanley Electric and TMT Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMT Steel Public and Thai Stanley 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 Thai Stanley Electric are associated (or correlated) with TMT Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMT Steel Public has no effect on the direction of Thai Stanley i.e., Thai Stanley and TMT Steel go up and down completely randomly.
Pair Corralation between Thai Stanley and TMT Steel
Assuming the 90 days trading horizon Thai Stanley Electric is expected to generate 0.47 times more return on investment than TMT Steel. However, Thai Stanley Electric is 2.13 times less risky than TMT Steel. It trades about 0.0 of its potential returns per unit of risk. TMT Steel Public is currently generating about -0.91 per unit of risk. If you would invest 21,800 in Thai Stanley Electric on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Thai Stanley Electric or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thai Stanley Electric vs. TMT Steel Public
Performance |
| Timeline |
| Thai Stanley Electric |
| TMT Steel Public |
Thai Stanley and TMT Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Stanley and TMT Steel
The main advantage of trading using opposite Thai Stanley and TMT Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Stanley position performs unexpectedly, TMT Steel 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 TMT Steel will offset losses from the drop in TMT Steel's long position.| Thai Stanley vs. TRC Construction Public | Thai Stanley vs. Bangkok Expressway and | Thai Stanley vs. Lohakit Metal Public | Thai Stanley vs. Gunkul Engineering Public |
| TMT Steel vs. MCS Steel Public | TMT Steel vs. Thai Vegetable Oil | TMT Steel vs. Pacific Pipe Public | TMT Steel vs. Tipco Foods 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |