Correlation Between Tanachira Retail and Premier Marketing
Can any of the company-specific risk be diversified away by investing in both Tanachira Retail and Premier Marketing 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 Tanachira Retail and Premier Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanachira Retail and Premier Marketing Public, you can compare the effects of market volatilities on Tanachira Retail and Premier Marketing 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 Tanachira Retail with a short position of Premier Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanachira Retail and Premier Marketing.
Diversification Opportunities for Tanachira Retail and Premier Marketing
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tanachira and Premier is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tanachira Retail and Premier Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Marketing Public and Tanachira Retail 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 Tanachira Retail are associated (or correlated) with Premier Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Marketing Public has no effect on the direction of Tanachira Retail i.e., Tanachira Retail and Premier Marketing go up and down completely randomly.
Pair Corralation between Tanachira Retail and Premier Marketing
Assuming the 90 days trading horizon Tanachira Retail is expected to under-perform the Premier Marketing. In addition to that, Tanachira Retail is 4.35 times more volatile than Premier Marketing Public. It trades about -0.11 of its total potential returns per unit of risk. Premier Marketing Public is currently generating about -0.17 per unit of volatility. If you would invest 935.00 in Premier Marketing Public on September 13, 2024 and sell it today you would lose (30.00) from holding Premier Marketing Public or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tanachira Retail vs. Premier Marketing Public
Performance |
| Timeline |
| Tanachira Retail |
| Premier Marketing Public |
Tanachira Retail and Premier Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanachira Retail and Premier Marketing
The main advantage of trading using opposite Tanachira Retail and Premier Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanachira Retail position performs unexpectedly, Premier Marketing 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 Premier Marketing will offset losses from the drop in Premier Marketing's long position.| Tanachira Retail vs. Delta Electronics Public | Tanachira Retail vs. Delta Electronics Public | Tanachira Retail vs. Airports of Thailand | Tanachira Retail vs. Airports of Thailand |
| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |