Correlation Between Thaicom Public and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both Thaicom Public and Thanapiriya 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 Thaicom Public and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaicom Public and Thanapiriya Public, you can compare the effects of market volatilities on Thaicom Public and Thanapiriya 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 Thaicom Public with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaicom Public and Thanapiriya Public.
Diversification Opportunities for Thaicom Public and Thanapiriya Public
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thaicom and Thanapiriya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Thaicom Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya 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 Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of Thaicom Public i.e., Thaicom Public and Thanapiriya Public go up and down completely randomly.
Pair Corralation between Thaicom Public and Thanapiriya Public
Assuming the 90 days trading horizon Thaicom Public is expected to under-perform the Thanapiriya Public. In addition to that, Thaicom Public is 1.43 times more volatile than Thanapiriya Public. It trades about -0.16 of its total potential returns per unit of risk. Thanapiriya Public is currently generating about 0.06 per unit of volatility. If you would invest 352.00 in Thanapiriya Public on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Thanapiriya Public or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaicom Public vs. Thanapiriya Public
Performance |
| Timeline |
| Thaicom Public |
| Thanapiriya Public |
Thaicom Public and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaicom Public and Thanapiriya Public
The main advantage of trading using opposite Thaicom Public and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaicom Public position performs unexpectedly, Thanapiriya 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public'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 |
| Thanapiriya Public vs. S P V | Thanapiriya Public vs. Mega Lifesciences Public | Thanapiriya Public vs. TAC Consumer Public | Thanapiriya Public vs. Com7 PCL |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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