Correlation Between Thai Agro and Susco Public
Can any of the company-specific risk be diversified away by investing in both Thai Agro and Susco 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 Thai Agro and Susco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Agro Energy and Susco Public, you can compare the effects of market volatilities on Thai Agro and Susco 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 Thai Agro with a short position of Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Agro and Susco Public.
Diversification Opportunities for Thai Agro and Susco Public
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thai and Susco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Thai Agro Energy and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco Public and Thai Agro 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 Thai Agro Energy are associated (or correlated) with Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of Thai Agro i.e., Thai Agro and Susco Public go up and down completely randomly.
Pair Corralation between Thai Agro and Susco Public
Assuming the 90 days trading horizon Thai Agro Energy is expected to generate 22.57 times more return on investment than Susco Public. However, Thai Agro is 22.57 times more volatile than Susco Public. It trades about 0.04 of its potential returns per unit of risk. Susco Public is currently generating about -0.01 per unit of risk. If you would invest 126.00 in Thai Agro Energy on November 27, 2024 and sell it today you would lose (69.00) from holding Thai Agro Energy or give up 54.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Agro Energy vs. Susco Public
Performance |
| Timeline |
| Thai Agro Energy |
| Susco Public |
Thai Agro and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Agro and Susco Public
The main advantage of trading using opposite Thai Agro and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Agro position performs unexpectedly, Susco 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 Susco Public will offset losses from the drop in Susco Public's long position.| Thai Agro vs. Susco Public | Thai Agro vs. Siamgas and Petrochemicals | Thai Agro vs. TPI Polene Power | Thai Agro vs. TKS Technologies Public |
| Susco Public vs. Lanna Resources Public | Susco Public vs. Thai Oil Public | Susco Public vs. Star Petroleum Refining | Susco Public vs. Ratch Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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