Correlation Between Thaifoods Group and Union Mosaic
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and Union Mosaic 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 Union Mosaic 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 The Union Mosaic, you can compare the effects of market volatilities on Thaifoods Group and Union Mosaic 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 Union Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and Union Mosaic.
Diversification Opportunities for Thaifoods Group and Union Mosaic
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thaifoods and Union is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and The Union Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Mosaic 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 Union Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Mosaic has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and Union Mosaic go up and down completely randomly.
Pair Corralation between Thaifoods Group and Union Mosaic
Assuming the 90 days trading horizon Thaifoods Group Public is expected to generate 0.31 times more return on investment than Union Mosaic. However, Thaifoods Group Public is 3.28 times less risky than Union Mosaic. It trades about -0.14 of its potential returns per unit of risk. The Union Mosaic is currently generating about -0.06 per unit of risk. If you would invest 342.00 in Thaifoods Group Public on October 22, 2024 and sell it today you would lose (14.00) from holding Thaifoods Group Public or give up 4.09% 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. The Union Mosaic
Performance |
| Timeline |
| Thaifoods Group Public |
| Union Mosaic |
Thaifoods Group and Union Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and Union Mosaic
The main advantage of trading using opposite Thaifoods Group and Union Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, Union Mosaic 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 Union Mosaic will offset losses from the drop in Union Mosaic'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 |
| Union Mosaic vs. Vanachai Group Public | Union Mosaic vs. Univentures Public | Union Mosaic vs. Tycoons Worldwide Group | Union Mosaic vs. Thoresen Thai Agencies |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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