Correlation Between Susco Public and Thachang Green
Can any of the company-specific risk be diversified away by investing in both Susco Public and Thachang Green 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 Susco Public and Thachang Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susco Public and Thachang Green Energy, you can compare the effects of market volatilities on Susco Public and Thachang Green 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 Susco Public with a short position of Thachang Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susco Public and Thachang Green.
Diversification Opportunities for Susco Public and Thachang Green
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Susco and Thachang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Susco Public and Thachang Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thachang Green Energy and Susco 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 Susco Public are associated (or correlated) with Thachang Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thachang Green Energy has no effect on the direction of Susco Public i.e., Susco Public and Thachang Green go up and down completely randomly.
Pair Corralation between Susco Public and Thachang Green
Assuming the 90 days trading horizon Susco Public is expected to generate 0.57 times more return on investment than Thachang Green. However, Susco Public is 1.77 times less risky than Thachang Green. It trades about -0.08 of its potential returns per unit of risk. Thachang Green Energy is currently generating about -0.05 per unit of risk. If you would invest 315.00 in Susco Public on November 3, 2024 and sell it today you would lose (39.00) from holding Susco Public or give up 12.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Susco Public vs. Thachang Green Energy
Performance |
| Timeline |
| Susco Public |
| Thachang Green Energy |
Susco Public and Thachang Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susco Public and Thachang Green
The main advantage of trading using opposite Susco Public and Thachang Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susco Public position performs unexpectedly, Thachang Green 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 Thachang Green will offset losses from the drop in Thachang Green's long position.| Susco Public vs. Lanna Resources Public | Susco Public vs. Thai Oil Public | Susco Public vs. Star Petroleum Refining | Susco Public vs. Ratch Group Public |
| Thachang Green vs. TKS Technologies Public | Thachang Green vs. Thai German Products Public | Thachang Green vs. Eastern Power Group | Thachang Green vs. Susco 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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