Correlation Between Thaicom Public and TMC Industrial
Can any of the company-specific risk be diversified away by investing in both Thaicom Public and TMC Industrial 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 Thaicom Public and TMC Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaicom Public and TMC Industrial Public, you can compare the effects of market volatilities on Thaicom Public and TMC Industrial 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 Thaicom Public with a short position of TMC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaicom Public and TMC Industrial.
Diversification Opportunities for Thaicom Public and TMC Industrial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thaicom and TMC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thaicom Public and TMC Industrial Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMC Industrial Public and Thaicom Public 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 Thaicom Public are associated (or correlated) with TMC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMC Industrial Public has no effect on the direction of Thaicom Public i.e., Thaicom Public and TMC Industrial go up and down completely randomly.
Pair Corralation between Thaicom Public and TMC Industrial
Assuming the 90 days trading horizon Thaicom Public is expected to generate 15.9 times more return on investment than TMC Industrial. However, Thaicom Public is 15.9 times more volatile than TMC Industrial Public. It trades about 0.05 of its potential returns per unit of risk. TMC Industrial Public is currently generating about -0.06 per unit of risk. If you would invest 1,188 in Thaicom Public on August 31, 2024 and sell it today you would earn a total of 102.00 from holding Thaicom Public or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Thaicom Public vs. TMC Industrial Public
Performance |
| Timeline |
| Thaicom Public |
| TMC Industrial Public |
Thaicom Public and TMC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaicom Public and TMC Industrial
The main advantage of trading using opposite Thaicom Public and TMC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaicom Public position performs unexpectedly, TMC Industrial 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 TMC Industrial will offset losses from the drop in TMC Industrial's long position.| Thaicom Public vs. Bangkok Chain Hospital | Thaicom Public vs. Grande Asset Hotels | Thaicom Public vs. Better World Green | Thaicom Public vs. Chularat Hospital Public |
| TMC Industrial vs. Thaicom Public | TMC Industrial vs. Home Pottery Public | TMC Industrial vs. TAC Consumer Public | TMC Industrial vs. Thanapiriya Public |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |