Correlation Between STPI Public and TTCL Public
Can any of the company-specific risk be diversified away by investing in both STPI Public and TTCL Public 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 STPI Public and TTCL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STPI Public and TTCL Public, you can compare the effects of market volatilities on STPI Public and TTCL Public 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 STPI Public with a short position of TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of STPI Public and TTCL Public.
Diversification Opportunities for STPI Public and TTCL Public
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between STPI and TTCL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding STPI Public and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL Public and STPI Public 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 STPI Public are associated (or correlated) with TTCL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTCL Public has no effect on the direction of STPI Public i.e., STPI Public and TTCL Public go up and down completely randomly.
Pair Corralation between STPI Public and TTCL Public
Assuming the 90 days trading horizon STPI Public is expected to generate 1.28 times more return on investment than TTCL Public. However, STPI Public is 1.28 times more volatile than TTCL Public. It trades about -0.25 of its potential returns per unit of risk. TTCL Public is currently generating about -0.51 per unit of risk. If you would invest 398.00 in STPI Public on September 5, 2024 and sell it today you would lose (44.00) from holding STPI Public or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
STPI Public vs. TTCL Public
Performance |
| Timeline |
| STPI Public |
| TTCL Public |
STPI Public and TTCL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STPI Public and TTCL Public
The main advantage of trading using opposite STPI Public and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STPI Public position performs unexpectedly, TTCL Public 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 TTCL Public will offset losses from the drop in TTCL Public's long position.| STPI Public vs. PTT Public | STPI Public vs. PTT Exploration and | STPI Public vs. The Siam Cement | STPI Public vs. CP ALL Public |
| TTCL Public vs. Asia Aviation Public | TTCL Public vs. Bangkok Dusit Medical | TTCL Public vs. Bangkok Expressway and | TTCL Public vs. Airports of Thailand |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |