Correlation Between Thachang Green and Polyplex Public
Can any of the company-specific risk be diversified away by investing in both Thachang Green and Polyplex 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 Thachang Green and Polyplex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thachang Green Energy and Polyplex Public, you can compare the effects of market volatilities on Thachang Green and Polyplex 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 Thachang Green with a short position of Polyplex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thachang Green and Polyplex Public.
Diversification Opportunities for Thachang Green and Polyplex Public
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thachang and Polyplex is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thachang Green Energy and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex Public and Thachang Green 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 Thachang Green Energy are associated (or correlated) with Polyplex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex Public has no effect on the direction of Thachang Green i.e., Thachang Green and Polyplex Public go up and down completely randomly.
Pair Corralation between Thachang Green and Polyplex Public
Assuming the 90 days trading horizon Thachang Green Energy is expected to generate 1.29 times more return on investment than Polyplex Public. However, Thachang Green is 1.29 times more volatile than Polyplex Public. It trades about 0.03 of its potential returns per unit of risk. Polyplex Public is currently generating about -0.04 per unit of risk. If you would invest 176.00 in Thachang Green Energy on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Thachang Green Energy or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thachang Green Energy vs. Polyplex Public
Performance |
| Timeline |
| Thachang Green Energy |
| Polyplex Public |
Thachang Green and Polyplex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thachang Green and Polyplex Public
The main advantage of trading using opposite Thachang Green and Polyplex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thachang Green position performs unexpectedly, Polyplex 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 Polyplex Public will offset losses from the drop in Polyplex Public's long position.| Thachang Green vs. TKS Technologies Public | Thachang Green vs. Thai German Products Public | Thachang Green vs. Eastern Power Group | Thachang Green vs. Susco Public |
| Polyplex Public vs. Precious Shipping Public | Polyplex Public vs. PTT Global Chemical | Polyplex Public vs. Indorama Ventures PCL | Polyplex Public vs. Somboon Advance Technology |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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