Correlation Between TEAM Consulting and Taokaenoi Food
Can any of the company-specific risk be diversified away by investing in both TEAM Consulting and Taokaenoi Food 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 TEAM Consulting and Taokaenoi Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEAM Consulting Engineering and Taokaenoi Food Marketing, you can compare the effects of market volatilities on TEAM Consulting and Taokaenoi Food 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 TEAM Consulting with a short position of Taokaenoi Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEAM Consulting and Taokaenoi Food.
Diversification Opportunities for TEAM Consulting and Taokaenoi Food
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between TEAM and Taokaenoi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding TEAM Consulting Engineering and Taokaenoi Food Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taokaenoi Food Marketing and TEAM Consulting 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 TEAM Consulting Engineering are associated (or correlated) with Taokaenoi Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taokaenoi Food Marketing has no effect on the direction of TEAM Consulting i.e., TEAM Consulting and Taokaenoi Food go up and down completely randomly.
Pair Corralation between TEAM Consulting and Taokaenoi Food
Assuming the 90 days trading horizon TEAM Consulting Engineering is expected to under-perform the Taokaenoi Food. But the stock apears to be less risky and, when comparing its historical volatility, TEAM Consulting Engineering is 1.06 times less risky than Taokaenoi Food. The stock trades about -0.47 of its potential returns per unit of risk. The Taokaenoi Food Marketing is currently generating about -0.45 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Taokaenoi Food Marketing on August 29, 2024 and sell it today you would lose (220.00) from holding Taokaenoi Food Marketing or give up 20.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEAM Consulting Engineering vs. Taokaenoi Food Marketing
Performance |
| Timeline |
| TEAM Consulting Engi |
| Taokaenoi Food Marketing |
TEAM Consulting and Taokaenoi Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEAM Consulting and Taokaenoi Food
The main advantage of trading using opposite TEAM Consulting and Taokaenoi Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEAM Consulting position performs unexpectedly, Taokaenoi Food 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 Taokaenoi Food will offset losses from the drop in Taokaenoi Food's long position.| TEAM Consulting vs. TCM Public | TEAM Consulting vs. The Steel Public | TEAM Consulting vs. The Erawan Group | TEAM Consulting vs. Ditto Public |
| Taokaenoi Food vs. CP ALL Public | Taokaenoi Food vs. Carabao Group Public | Taokaenoi Food vs. Thai Union Group | Taokaenoi Food vs. Minor International 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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