Correlation Between Thai President and Steel Public
Can any of the company-specific risk be diversified away by investing in both Thai President and Steel Public 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 Thai President and Steel Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai President Foods and The Steel Public, you can compare the effects of market volatilities on Thai President and Steel Public 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 Thai President with a short position of Steel Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai President and Steel Public.
Diversification Opportunities for Thai President and Steel Public
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Steel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai President Foods and The Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Public and Thai President 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 Thai President Foods are associated (or correlated) with Steel Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Public has no effect on the direction of Thai President i.e., Thai President and Steel Public go up and down completely randomly.
Pair Corralation between Thai President and Steel Public
Assuming the 90 days trading horizon Thai President Foods is expected to under-perform the Steel Public. But the stock apears to be less risky and, when comparing its historical volatility, Thai President Foods is 187.39 times less risky than Steel Public. The stock trades about -0.02 of its potential returns per unit of risk. The The Steel Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 102.00 in The Steel Public on September 1, 2024 and sell it today you would lose (26.00) from holding The Steel Public or give up 25.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Thai President Foods vs. The Steel Public
Performance |
| Timeline |
| Thai President Foods |
| Steel Public |
Thai President and Steel Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai President and Steel Public
The main advantage of trading using opposite Thai President and Steel Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai President position performs unexpectedly, Steel Public 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 Steel Public will offset losses from the drop in Steel Public's long position.| Thai President vs. MK Restaurant Group | Thai President vs. TRC Construction Public | Thai President vs. Bangkok Expressway and | Thai President vs. Lohakit Metal Public |
| Steel Public vs. TMT Steel Public | Steel Public vs. Tycoons Worldwide Group | Steel Public vs. Thai German Products Public | Steel Public vs. Siam Steel Service |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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