Correlation Between Thaifoods Group and Gratitude Infinite
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and Gratitude Infinite 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 Gratitude Infinite 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 Gratitude Infinite Public, you can compare the effects of market volatilities on Thaifoods Group and Gratitude Infinite 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 Gratitude Infinite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and Gratitude Infinite.
Diversification Opportunities for Thaifoods Group and Gratitude Infinite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thaifoods and Gratitude is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and Gratitude Infinite Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gratitude Infinite Public 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 Gratitude Infinite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gratitude Infinite Public has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and Gratitude Infinite go up and down completely randomly.
Pair Corralation between Thaifoods Group and Gratitude Infinite
Assuming the 90 days trading horizon Thaifoods Group Public is expected to generate 0.21 times more return on investment than Gratitude Infinite. However, Thaifoods Group Public is 4.81 times less risky than Gratitude Infinite. It trades about -0.32 of its potential returns per unit of risk. Gratitude Infinite Public is currently generating about -0.18 per unit of risk. If you would invest 390.00 in Thaifoods Group Public on September 12, 2024 and sell it today you would lose (38.00) from holding Thaifoods Group Public or give up 9.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaifoods Group Public vs. Gratitude Infinite Public
Performance |
| Timeline |
| Thaifoods Group Public |
| Gratitude Infinite Public |
Thaifoods Group and Gratitude Infinite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and Gratitude Infinite
The main advantage of trading using opposite Thaifoods Group and Gratitude Infinite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, Gratitude Infinite 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 Gratitude Infinite will offset losses from the drop in Gratitude Infinite's long position.| Thaifoods Group vs. GFPT Public | Thaifoods Group vs. Dynasty Ceramic Public | Thaifoods Group vs. Haad Thip Public | Thaifoods Group vs. The Erawan Group |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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