Correlation Between Tropical Canning and Haad Thip
Can any of the company-specific risk be diversified away by investing in both Tropical Canning and Haad Thip 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 Tropical Canning and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tropical Canning Public and Haad Thip Public, you can compare the effects of market volatilities on Tropical Canning and Haad Thip 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 Tropical Canning with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tropical Canning and Haad Thip.
Diversification Opportunities for Tropical Canning and Haad Thip
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tropical and Haad is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tropical Canning Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and Tropical Canning 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 Tropical Canning Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of Tropical Canning i.e., Tropical Canning and Haad Thip go up and down completely randomly.
Pair Corralation between Tropical Canning and Haad Thip
Assuming the 90 days horizon Tropical Canning is expected to generate 3.65 times less return on investment than Haad Thip. In addition to that, Tropical Canning is 1.61 times more volatile than Haad Thip Public. It trades about 0.03 of its total potential returns per unit of risk. Haad Thip Public is currently generating about 0.2 per unit of volatility. If you would invest 1,600 in Haad Thip Public on November 27, 2024 and sell it today you would earn a total of 60.00 from holding Haad Thip Public or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tropical Canning Public vs. Haad Thip Public
Performance |
| Timeline |
| Tropical Canning Public |
| Haad Thip Public |
Tropical Canning and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tropical Canning and Haad Thip
The main advantage of trading using opposite Tropical Canning and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tropical Canning position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| Tropical Canning vs. Thai Vegetable Oil | Tropical Canning vs. Tipco Foods Public | Tropical Canning vs. Haad Thip Public | Tropical Canning vs. SP Syndicate Public |
| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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