Correlation Between Thai Coating and Forth Public
Can any of the company-specific risk be diversified away by investing in both Thai Coating and Forth 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 Coating and Forth Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Coating Industrial and Forth Public, you can compare the effects of market volatilities on Thai Coating and Forth 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 Coating with a short position of Forth Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Coating and Forth Public.
Diversification Opportunities for Thai Coating and Forth Public
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Forth is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thai Coating Industrial and Forth Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth Public and Thai Coating 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 Coating Industrial are associated (or correlated) with Forth Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Public has no effect on the direction of Thai Coating i.e., Thai Coating and Forth Public go up and down completely randomly.
Pair Corralation between Thai Coating and Forth Public
Assuming the 90 days trading horizon Thai Coating Industrial is expected to generate 2.27 times more return on investment than Forth Public. However, Thai Coating is 2.27 times more volatile than Forth Public. It trades about 0.12 of its potential returns per unit of risk. Forth Public is currently generating about -0.12 per unit of risk. If you would invest 2,400 in Thai Coating Industrial on September 3, 2024 and sell it today you would earn a total of 350.00 from holding Thai Coating Industrial or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thai Coating Industrial vs. Forth Public
Performance |
| Timeline |
| Thai Coating Industrial |
| Forth Public |
Thai Coating and Forth Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Coating and Forth Public
The main advantage of trading using opposite Thai Coating and Forth Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Coating position performs unexpectedly, Forth 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 Forth Public will offset losses from the drop in Forth Public's long position.| Thai Coating vs. PTT Public | Thai Coating vs. PTT Exploration and | Thai Coating vs. The Siam Cement | Thai Coating vs. CP ALL Public |
| Forth Public vs. Heng Leasing Capital | Forth Public vs. Hydrogen Freehold Leasehold | Forth Public vs. WHA Industrial Leasehold | Forth Public vs. Thai Coating Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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