Correlation Between Thaifoods Group and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and Thaifoods Group 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 Thaifoods Group 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 Thaifoods Group Public, you can compare the effects of market volatilities on Thaifoods Group and Thaifoods Group 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and Thaifoods Group.
Diversification Opportunities for Thaifoods Group and Thaifoods Group
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thaifoods and Thaifoods is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and Thaifoods Group go up and down completely randomly.
Pair Corralation between Thaifoods Group and Thaifoods Group
Assuming the 90 days trading horizon Thaifoods Group is expected to generate 78.87 times less return on investment than Thaifoods Group. But when comparing it to its historical volatility, Thaifoods Group Public is 45.58 times less risky than Thaifoods Group. It trades about 0.05 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaifoods Group Public vs. Thaifoods Group Public
Performance |
| Timeline |
| Thaifoods Group Public |
| Thaifoods Group Public |
Thaifoods Group and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and Thaifoods Group
The main advantage of trading using opposite Thaifoods Group and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| Thaifoods Group vs. GFPT Public | Thaifoods Group vs. Thai Union Group | Thaifoods Group vs. Taokaenoi Food Marketing | Thaifoods Group vs. Com7 PCL |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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