Correlation Between Thai Coating and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both Thai Coating and KERRY EXPRESS 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 KERRY EXPRESS 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 KERRY EXPRESS, you can compare the effects of market volatilities on Thai Coating and KERRY EXPRESS 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 KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Coating and KERRY EXPRESS.
Diversification Opportunities for Thai Coating and KERRY EXPRESS
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and KERRY is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thai Coating Industrial and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS 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 KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of Thai Coating i.e., Thai Coating and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between Thai Coating and KERRY EXPRESS
Assuming the 90 days trading horizon Thai Coating Industrial is expected to generate 0.68 times more return on investment than KERRY EXPRESS. However, Thai Coating Industrial is 1.47 times less risky than KERRY EXPRESS. It trades about 0.02 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.07 per unit of risk. If you would invest 2,664 in Thai Coating Industrial on September 2, 2024 and sell it today you would earn a total of 86.00 from holding Thai Coating Industrial or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Thai Coating Industrial vs. KERRY EXPRESS
Performance |
| Timeline |
| Thai Coating Industrial |
| KERRY EXPRESS |
Thai Coating and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Coating and KERRY EXPRESS
The main advantage of trading using opposite Thai Coating and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Coating position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| Thai Coating vs. AAPICO Hitech Public | Thai Coating vs. AP Public | Thai Coating vs. Aikchol Hospital Public | Thai Coating vs. Bank of Ayudhya |
| KERRY EXPRESS vs. Thai Coating Industrial | KERRY EXPRESS vs. Sun Vending Technology | KERRY EXPRESS vs. Lohakit Metal Public | KERRY EXPRESS vs. President Automobile Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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