Correlation Between Thanachart Capital and Thai Mitsuwa
Can any of the company-specific risk be diversified away by investing in both Thanachart Capital and Thai Mitsuwa 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 Thai Mitsuwa 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 Thai Mitsuwa Public, you can compare the effects of market volatilities on Thanachart Capital and Thai Mitsuwa 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 Thai Mitsuwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanachart Capital and Thai Mitsuwa.
Diversification Opportunities for Thanachart Capital and Thai Mitsuwa
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thanachart and Thai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital Public and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa 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 Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of Thanachart Capital i.e., Thanachart Capital and Thai Mitsuwa go up and down completely randomly.
Pair Corralation between Thanachart Capital and Thai Mitsuwa
Assuming the 90 days trading horizon Thanachart Capital Public is expected to under-perform the Thai Mitsuwa. But the stock apears to be less risky and, when comparing its historical volatility, Thanachart Capital Public is 1.17 times less risky than Thai Mitsuwa. The stock trades about -0.17 of its potential returns per unit of risk. The Thai Mitsuwa Public is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 6,350 in Thai Mitsuwa Public on August 29, 2024 and sell it today you would lose (100.00) from holding Thai Mitsuwa Public or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanachart Capital Public vs. Thai Mitsuwa Public
Performance |
| Timeline |
| Thanachart Capital Public |
| Thai Mitsuwa Public |
Thanachart Capital and Thai Mitsuwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanachart Capital and Thai Mitsuwa
The main advantage of trading using opposite Thanachart Capital and Thai Mitsuwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanachart Capital position performs unexpectedly, Thai Mitsuwa 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 Thai Mitsuwa will offset losses from the drop in Thai Mitsuwa's long position.| Thanachart Capital vs. TISCO Financial Group | Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. SCB X Public | Thanachart Capital vs. Kasikornbank Public |
| Thai Mitsuwa vs. Sherwood Public | Thai Mitsuwa vs. Thanachart Capital Public | Thai Mitsuwa vs. T S Flour | Thai Mitsuwa vs. Ubis 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |