Correlation Between Super Energy and TTCL Public
Can any of the company-specific risk be diversified away by investing in both Super Energy 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 Super Energy and TTCL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy and TTCL Public, you can compare the effects of market volatilities on Super Energy 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 Super Energy with a short position of TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and TTCL Public.
Diversification Opportunities for Super Energy and TTCL Public
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and TTCL is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL Public and Super Energy 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 Super Energy 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 Super Energy i.e., Super Energy and TTCL Public go up and down completely randomly.
Pair Corralation between Super Energy and TTCL Public
Assuming the 90 days trading horizon Super Energy is expected to under-perform the TTCL Public. But the stock apears to be less risky and, when comparing its historical volatility, Super Energy is 1.09 times less risky than TTCL Public. The stock trades about -0.31 of its potential returns per unit of risk. The TTCL Public is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 200.00 in TTCL Public on October 21, 2024 and sell it today you would lose (18.00) from holding TTCL Public or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy vs. TTCL Public
Performance |
| Timeline |
| Super Energy |
| TTCL Public |
Super Energy and TTCL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and TTCL Public
The main advantage of trading using opposite Super Energy and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy 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.| Super Energy vs. Ratch Group Public | Super Energy vs. RPCG Public | Super Energy vs. Siam City Cement | Super Energy vs. Siamgas and Petrochemicals |
| TTCL Public vs. Super Energy | TTCL Public vs. RPCG Public | TTCL Public vs. Thoresen Thai Agencies | TTCL Public vs. Precious Shipping 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.
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