Correlation Between Tropical Canning and Trinity Watthana
Can any of the company-specific risk be diversified away by investing in both Tropical Canning and Trinity Watthana 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 Trinity Watthana 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 Trinity Watthana Public, you can compare the effects of market volatilities on Tropical Canning and Trinity Watthana 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 Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tropical Canning and Trinity Watthana.
Diversification Opportunities for Tropical Canning and Trinity Watthana
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tropical and Trinity is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tropical Canning Public and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana 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 Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of Tropical Canning i.e., Tropical Canning and Trinity Watthana go up and down completely randomly.
Pair Corralation between Tropical Canning and Trinity Watthana
Assuming the 90 days horizon Tropical Canning Public is expected to generate 1.0 times more return on investment than Trinity Watthana. However, Tropical Canning Public is 1.0 times less risky than Trinity Watthana. It trades about 0.05 of its potential returns per unit of risk. Trinity Watthana Public is currently generating about 0.05 per unit of risk. If you would invest 533.00 in Tropical Canning Public on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Tropical Canning Public or generate 33.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tropical Canning Public vs. Trinity Watthana Public
Performance |
| Timeline |
| Tropical Canning Public |
| Trinity Watthana Public |
Tropical Canning and Trinity Watthana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tropical Canning and Trinity Watthana
The main advantage of trading using opposite Tropical Canning and Trinity Watthana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tropical Canning position performs unexpectedly, Trinity Watthana 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 Trinity Watthana will offset losses from the drop in Trinity Watthana'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 |
| Trinity Watthana vs. Asia Plus Group | Trinity Watthana vs. Thitikorn Public | Trinity Watthana vs. TISCO Financial Group | Trinity Watthana vs. KGI Securities 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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