Correlation Between Steel Public and Thai President
Can any of the company-specific risk be diversified away by investing in both Steel Public and Thai President 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 Steel Public and Thai President into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Steel Public and Thai President Foods, you can compare the effects of market volatilities on Steel Public and Thai President 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 Steel Public with a short position of Thai President. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Public and Thai President.
Diversification Opportunities for Steel Public and Thai President
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Steel Public and Thai President Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai President Foods and Steel 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 The Steel Public are associated (or correlated) with Thai President. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai President Foods has no effect on the direction of Steel Public i.e., Steel Public and Thai President go up and down completely randomly.
Pair Corralation between Steel Public and Thai President
Assuming the 90 days trading horizon The Steel Public is expected to generate 187.39 times more return on investment than Thai President. However, Steel Public is 187.39 times more volatile than Thai President Foods. It trades about 0.08 of its potential returns per unit of risk. Thai President Foods is currently generating about -0.02 per unit of risk. If you would invest 102.00 in The Steel Public on September 1, 2024 and sell it today you would lose (26.00) from holding The Steel Public or give up 25.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
The Steel Public vs. Thai President Foods
Performance |
| Timeline |
| Steel Public |
| Thai President Foods |
Steel Public and Thai President Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Public and Thai President
The main advantage of trading using opposite Steel Public and Thai President positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Public position performs unexpectedly, Thai President 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 Thai President will offset losses from the drop in Thai President's long position.| Steel Public vs. TMT Steel Public | Steel Public vs. Tycoons Worldwide Group | Steel Public vs. Thai German Products Public | Steel Public vs. Siam Steel Service |
| Thai President vs. MK Restaurant Group | Thai President vs. TRC Construction Public | Thai President vs. Bangkok Expressway and | Thai President vs. Lohakit Metal 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 CEOs Directory module to screen CEOs from public companies around the world.
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