Correlation Between Thaifoods Group and Turnkey Communication
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and Turnkey Communication 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 Thaifoods Group and Turnkey Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaifoods Group Public and Turnkey Communication Services, you can compare the effects of market volatilities on Thaifoods Group and Turnkey Communication 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 Thaifoods Group with a short position of Turnkey Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and Turnkey Communication.
Diversification Opportunities for Thaifoods Group and Turnkey Communication
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thaifoods and Turnkey is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and Turnkey Communication Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turnkey Communication and Thaifoods Group 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 Thaifoods Group Public are associated (or correlated) with Turnkey Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turnkey Communication has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and Turnkey Communication go up and down completely randomly.
Pair Corralation between Thaifoods Group and Turnkey Communication
Assuming the 90 days trading horizon Thaifoods Group Public is expected to under-perform the Turnkey Communication. In addition to that, Thaifoods Group is 1.76 times more volatile than Turnkey Communication Services. It trades about -0.21 of its total potential returns per unit of risk. Turnkey Communication Services is currently generating about -0.3 per unit of volatility. If you would invest 1,250 in Turnkey Communication Services on November 7, 2024 and sell it today you would lose (210.00) from holding Turnkey Communication Services or give up 16.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaifoods Group Public vs. Turnkey Communication Services
Performance |
| Timeline |
| Thaifoods Group Public |
| Turnkey Communication |
Thaifoods Group and Turnkey Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and Turnkey Communication
The main advantage of trading using opposite Thaifoods Group and Turnkey Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, Turnkey Communication 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 Turnkey Communication will offset losses from the drop in Turnkey Communication's long position.| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom Public |
| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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