Correlation Between Thaifoods Group and T S
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and T S 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 T S 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 T S Flour, you can compare the effects of market volatilities on Thaifoods Group and T S 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 T S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and T S.
Diversification Opportunities for Thaifoods Group and T S
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thaifoods and TMILL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and T S Flour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T S Flour 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 T S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T S Flour has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and T S go up and down completely randomly.
Pair Corralation between Thaifoods Group and T S
Assuming the 90 days trading horizon Thaifoods Group Public is expected to generate 0.87 times more return on investment than T S. However, Thaifoods Group Public is 1.15 times less risky than T S. It trades about -0.22 of its potential returns per unit of risk. T S Flour is currently generating about -0.21 per unit of risk. If you would invest 407.00 in Thaifoods Group Public on September 3, 2024 and sell it today you would lose (39.00) from holding Thaifoods Group Public or give up 9.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaifoods Group Public vs. T S Flour
Performance |
| Timeline |
| Thaifoods Group Public |
| T S Flour |
Thaifoods Group and T S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and T S
The main advantage of trading using opposite Thaifoods Group and T S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, T S 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 T S will offset losses from the drop in T S'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 |
| T S vs. Thaifoods Group Public | T S vs. Thai President Foods | T S vs. Thai Capital | T S vs. Thaicom 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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