Correlation Between Tanachira Retail and SRI TRANG
Can any of the company-specific risk be diversified away by investing in both Tanachira Retail and SRI TRANG 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 SRI TRANG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanachira Retail and SRI TRANG GLOVES, you can compare the effects of market volatilities on Tanachira Retail and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanachira Retail and SRI TRANG.
Diversification Opportunities for Tanachira Retail and SRI TRANG
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tanachira and SRI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tanachira Retail and SRI TRANG GLOVES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG GLOVES 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG GLOVES has no effect on the direction of Tanachira Retail i.e., Tanachira Retail and SRI TRANG go up and down completely randomly.
Pair Corralation between Tanachira Retail and SRI TRANG
Assuming the 90 days trading horizon Tanachira Retail is expected to generate 26.62 times more return on investment than SRI TRANG. However, Tanachira Retail is 26.62 times more volatile than SRI TRANG GLOVES. It trades about 0.05 of its potential returns per unit of risk. SRI TRANG GLOVES is currently generating about -0.01 per unit of risk. If you would invest 1,573 in Tanachira Retail on November 2, 2024 and sell it today you would lose (1,008) from holding Tanachira Retail or give up 64.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.63% |
| Values | Daily Returns |
Tanachira Retail vs. SRI TRANG GLOVES
Performance |
| Timeline |
| Tanachira Retail |
| SRI TRANG GLOVES |
Tanachira Retail and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanachira Retail and SRI TRANG
The main advantage of trading using opposite Tanachira Retail and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanachira Retail position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG's long position.| Tanachira Retail vs. S Khonkaen Foods | Tanachira Retail vs. Thai Life Insurance | Tanachira Retail vs. SAF Special Steel | Tanachira Retail vs. Workpoint Entertainment Public |
| SRI TRANG vs. JKN Global Media | SRI TRANG vs. Mena Transport Public | SRI TRANG vs. Hwa Fong Rubber | SRI TRANG vs. KC Metalsheet 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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