Correlation Between Thai Coating and President Automobile
Can any of the company-specific risk be diversified away by investing in both Thai Coating and President Automobile 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 President Automobile 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 President Automobile Industries, you can compare the effects of market volatilities on Thai Coating and President Automobile 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 President Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Coating and President Automobile.
Diversification Opportunities for Thai Coating and President Automobile
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and President is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thai Coating Industrial and President Automobile Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on President Automobile 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 President Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of President Automobile has no effect on the direction of Thai Coating i.e., Thai Coating and President Automobile go up and down completely randomly.
Pair Corralation between Thai Coating and President Automobile
If you would invest 2,434 in Thai Coating Industrial on September 4, 2024 and sell it today you would earn a total of 316.00 from holding Thai Coating Industrial or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Thai Coating Industrial vs. President Automobile Industrie
Performance |
| Timeline |
| Thai Coating Industrial |
| President Automobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thai Coating and President Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Coating and President Automobile
The main advantage of trading using opposite Thai Coating and President Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Coating position performs unexpectedly, President Automobile 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 President Automobile will offset losses from the drop in President Automobile's long position.| Thai Coating vs. Thai Packaging Printing | Thai Coating vs. Thai Metal Drum | Thai Coating vs. Thai Film Industries | Thai Coating vs. TCM Public |
| President Automobile vs. Phol Dhanya Public | President Automobile vs. PTT Oil and | President Automobile vs. Pico Public | President Automobile vs. Pioneer Motor 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |