Correlation Between Symphony Communication and Thai Coating
Can any of the company-specific risk be diversified away by investing in both Symphony Communication and Thai Coating 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 Symphony Communication and Thai Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Communication Public and Thai Coating Industrial, you can compare the effects of market volatilities on Symphony Communication and Thai Coating 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 Symphony Communication with a short position of Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Communication and Thai Coating.
Diversification Opportunities for Symphony Communication and Thai Coating
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Symphony and Thai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Communication Public and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial and Symphony Communication 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 Symphony Communication Public are associated (or correlated) with Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Symphony Communication i.e., Symphony Communication and Thai Coating go up and down completely randomly.
Pair Corralation between Symphony Communication and Thai Coating
Assuming the 90 days trading horizon Symphony Communication Public is expected to generate 0.53 times more return on investment than Thai Coating. However, Symphony Communication Public is 1.89 times less risky than Thai Coating. It trades about -0.12 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about -0.13 per unit of risk. If you would invest 765.00 in Symphony Communication Public on October 20, 2024 and sell it today you would lose (45.00) from holding Symphony Communication Public or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Symphony Communication Public vs. Thai Coating Industrial
Performance |
| Timeline |
| Symphony Communication |
| Thai Coating Industrial |
Symphony Communication and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Communication and Thai Coating
The main advantage of trading using opposite Symphony Communication and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Communication position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating's long position.| Symphony Communication vs. Synnex Public | Symphony Communication vs. SVOA Public | Symphony Communication vs. Samart Telcoms Public | Symphony Communication vs. SVI Public |
| Thai Coating vs. Asia Metal Public | Thai Coating vs. Chonburi Concrete Product | Thai Coating vs. Asia Plus Group | Thai Coating vs. CSP Steel Center |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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