Correlation Between Sunsweet Public and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Sunsweet Public 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 Sunsweet Public and Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunsweet Public and Thaifoods Group Public, you can compare the effects of market volatilities on Sunsweet Public 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 Sunsweet Public with a short position of Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunsweet Public and Thaifoods Group.
Diversification Opportunities for Sunsweet Public and Thaifoods Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunsweet and Thaifoods is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sunsweet 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 Sunsweet 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 Sunsweet 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 Sunsweet Public i.e., Sunsweet Public and Thaifoods Group go up and down completely randomly.
Pair Corralation between Sunsweet Public and Thaifoods Group
Assuming the 90 days trading horizon Sunsweet Public is expected to generate 1.34 times more return on investment than Thaifoods Group. However, Sunsweet Public is 1.34 times more volatile than Thaifoods Group Public. It trades about -0.01 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.02 per unit of risk. If you would invest 496.00 in Sunsweet Public on September 4, 2024 and sell it today you would lose (98.00) from holding Sunsweet Public or give up 19.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunsweet Public vs. Thaifoods Group Public
Performance |
| Timeline |
| Sunsweet Public |
| Thaifoods Group Public |
Sunsweet Public and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunsweet Public and Thaifoods Group
The main advantage of trading using opposite Sunsweet Public and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunsweet Public 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.| Sunsweet Public vs. Muang Thai Insurance | Sunsweet Public vs. Indara Insurance Public | Sunsweet Public vs. Thai Nakarin Hospital | Sunsweet Public vs. Healthlead Public |
| Thaifoods Group vs. GFPT Public | Thaifoods Group vs. Thai Union Group | Thaifoods Group vs. Taokaenoi Food Marketing | Thaifoods Group vs. Com7 PCL |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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