Correlation Between Thai German and Susco Public
Can any of the company-specific risk be diversified away by investing in both Thai German and Susco 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 German and Susco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai German Products Public and Susco Public, you can compare the effects of market volatilities on Thai German and Susco 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 German with a short position of Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai German and Susco Public.
Diversification Opportunities for Thai German and Susco Public
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and Susco is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Thai German Products Public and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco Public and Thai German 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 German Products Public are associated (or correlated) with Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of Thai German i.e., Thai German and Susco Public go up and down completely randomly.
Pair Corralation between Thai German and Susco Public
Assuming the 90 days trading horizon Thai German Products Public is expected to under-perform the Susco Public. In addition to that, Thai German is 7.24 times more volatile than Susco Public. It trades about -0.05 of its total potential returns per unit of risk. Susco Public is currently generating about -0.03 per unit of volatility. If you would invest 302.00 in Susco Public on September 13, 2024 and sell it today you would lose (2.00) from holding Susco Public or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thai German Products Public vs. Susco Public
Performance |
| Timeline |
| Thai German Products |
| Susco Public |
Thai German and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai German and Susco Public
The main advantage of trading using opposite Thai German and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai German position performs unexpectedly, Susco 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 Susco Public will offset losses from the drop in Susco Public's long position.| Thai German vs. Thantawan Industry Public | Thai German vs. The Erawan Group | Thai German vs. Jay Mart Public | Thai German vs. Airports of Thailand |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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