Correlation Between Thai Group and PRG Public
Can any of the company-specific risk be diversified away by investing in both Thai Group and PRG 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 Group and PRG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Group Holdings and PRG Public, you can compare the effects of market volatilities on Thai Group and PRG 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 Group with a short position of PRG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Group and PRG Public.
Diversification Opportunities for Thai Group and PRG Public
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and PRG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Group Holdings and PRG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRG Public and Thai 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 Thai Group Holdings are associated (or correlated) with PRG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRG Public has no effect on the direction of Thai Group i.e., Thai Group and PRG Public go up and down completely randomly.
Pair Corralation between Thai Group and PRG Public
Assuming the 90 days trading horizon Thai Group is expected to generate 2.05 times less return on investment than PRG Public. But when comparing it to its historical volatility, Thai Group Holdings is 1.41 times less risky than PRG Public. It trades about 0.05 of its potential returns per unit of risk. PRG Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,024 in PRG Public on August 28, 2024 and sell it today you would lose (139.00) from holding PRG Public or give up 13.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Thai Group Holdings vs. PRG Public
Performance |
| Timeline |
| Thai Group Holdings |
| PRG Public |
Thai Group and PRG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Group and PRG Public
The main advantage of trading using opposite Thai Group and PRG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Group position performs unexpectedly, PRG 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 PRG Public will offset losses from the drop in PRG Public's long position.| Thai Group vs. Ratchthani Leasing Public | Thai Group vs. TEAM Consulting Engineering | Thai Group vs. Thai President Foods | Thai Group vs. Thai Reinsurance Public |
| PRG Public vs. Surapon Foods Public | PRG Public vs. Peoples Garment Public | PRG Public vs. President Bakery Public | PRG Public vs. Sri Trang Agro Industry |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |