Correlation Between Thai Capital and Sunsweet Public
Can any of the company-specific risk be diversified away by investing in both Thai Capital and Sunsweet Public 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 Thai Capital and Sunsweet Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Capital and Sunsweet Public, you can compare the effects of market volatilities on Thai Capital and Sunsweet Public 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 Thai Capital with a short position of Sunsweet Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Capital and Sunsweet Public.
Diversification Opportunities for Thai Capital and Sunsweet Public
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Sunsweet is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Thai Capital and Sunsweet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunsweet Public and Thai 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 Thai Capital are associated (or correlated) with Sunsweet Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunsweet Public has no effect on the direction of Thai Capital i.e., Thai Capital and Sunsweet Public go up and down completely randomly.
Pair Corralation between Thai Capital and Sunsweet Public
Assuming the 90 days trading horizon Thai Capital is expected to under-perform the Sunsweet Public. In addition to that, Thai Capital is 1.54 times more volatile than Sunsweet Public. It trades about -0.28 of its total potential returns per unit of risk. Sunsweet Public is currently generating about 0.06 per unit of volatility. If you would invest 386.00 in Sunsweet Public on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Sunsweet Public or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Capital vs. Sunsweet Public
Performance |
| Timeline |
| Thai Capital |
| Sunsweet Public |
Thai Capital and Sunsweet Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Capital and Sunsweet Public
The main advantage of trading using opposite Thai Capital and Sunsweet Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Capital position performs unexpectedly, Sunsweet Public 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 Sunsweet Public will offset losses from the drop in Sunsweet Public's long position.| Thai Capital vs. RPCG Public | Thai Capital vs. Solartron Public | Thai Capital vs. Star Petroleum Refining | Thai Capital vs. Super Energy |
| Sunsweet Public vs. Thaifoods Group Public | Sunsweet Public vs. Thai President Foods | Sunsweet Public vs. Thai Capital | Sunsweet Public vs. Thaicom 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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