Correlation Between Thanachart Capital and Tipco Asphalt
Can any of the company-specific risk be diversified away by investing in both Thanachart Capital and Tipco Asphalt 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 Thanachart Capital and Tipco Asphalt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanachart Capital Public and Tipco Asphalt Public, you can compare the effects of market volatilities on Thanachart Capital and Tipco Asphalt 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 Thanachart Capital with a short position of Tipco Asphalt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanachart Capital and Tipco Asphalt.
Diversification Opportunities for Thanachart Capital and Tipco Asphalt
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thanachart and Tipco is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital Public and Tipco Asphalt Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tipco Asphalt Public and Thanachart Capital 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 Thanachart Capital Public are associated (or correlated) with Tipco Asphalt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tipco Asphalt Public has no effect on the direction of Thanachart Capital i.e., Thanachart Capital and Tipco Asphalt go up and down completely randomly.
Pair Corralation between Thanachart Capital and Tipco Asphalt
Assuming the 90 days trading horizon Thanachart Capital Public is expected to under-perform the Tipco Asphalt. In addition to that, Thanachart Capital is 1.23 times more volatile than Tipco Asphalt Public. It trades about -0.06 of its total potential returns per unit of risk. Tipco Asphalt Public is currently generating about 0.01 per unit of volatility. If you would invest 1,470 in Tipco Asphalt Public on January 22, 2025 and sell it today you would earn a total of 0.00 from holding Tipco Asphalt Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanachart Capital Public vs. Tipco Asphalt Public
Performance |
| Timeline |
| Thanachart Capital Public |
| Tipco Asphalt Public |
Thanachart Capital and Tipco Asphalt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanachart Capital and Tipco Asphalt
The main advantage of trading using opposite Thanachart Capital and Tipco Asphalt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanachart Capital position performs unexpectedly, Tipco Asphalt 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 Tipco Asphalt will offset losses from the drop in Tipco Asphalt's long position.| Thanachart Capital vs. Allianz Ayudhya Capital | Thanachart Capital vs. Boutique Newcity Public | Thanachart Capital vs. AJ Plast Public | Thanachart Capital vs. Asia Fiber Public |
| Tipco Asphalt vs. PTT Public | Tipco Asphalt vs. PTT Exploration and | Tipco Asphalt vs. The Siam Cement | Tipco Asphalt vs. CP ALL 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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