Correlation Between THONBURI HEALTHCARE and 2S Metal
Can any of the company-specific risk be diversified away by investing in both THONBURI HEALTHCARE and 2S Metal 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 THONBURI HEALTHCARE and 2S Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THONBURI HEALTHCARE GRO NVDR and 2S Metal Public, you can compare the effects of market volatilities on THONBURI HEALTHCARE and 2S Metal 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 THONBURI HEALTHCARE with a short position of 2S Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of THONBURI HEALTHCARE and 2S Metal.
Diversification Opportunities for THONBURI HEALTHCARE and 2S Metal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between THONBURI and 2S Metal is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding THONBURI HEALTHCARE GRO NVDR and 2S Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2S Metal Public and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE GRO NVDR are associated (or correlated) with 2S Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2S Metal Public has no effect on the direction of THONBURI HEALTHCARE i.e., THONBURI HEALTHCARE and 2S Metal go up and down completely randomly.
Pair Corralation between THONBURI HEALTHCARE and 2S Metal
Assuming the 90 days trading horizon THONBURI HEALTHCARE GRO NVDR is expected to under-perform the 2S Metal. In addition to that, THONBURI HEALTHCARE is 1.94 times more volatile than 2S Metal Public. It trades about -0.18 of its total potential returns per unit of risk. 2S Metal Public is currently generating about -0.11 per unit of volatility. If you would invest 272.00 in 2S Metal Public on November 5, 2024 and sell it today you would lose (14.00) from holding 2S Metal Public or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
THONBURI HEALTHCARE GRO NVDR vs. 2S Metal Public
Performance |
| Timeline |
| THONBURI HEALTHCARE GRO |
| 2S Metal Public |
THONBURI HEALTHCARE and 2S Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THONBURI HEALTHCARE and 2S Metal
The main advantage of trading using opposite THONBURI HEALTHCARE and 2S Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THONBURI HEALTHCARE position performs unexpectedly, 2S Metal 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 2S Metal will offset losses from the drop in 2S Metal's long position.| THONBURI HEALTHCARE vs. Muang Thai Insurance | THONBURI HEALTHCARE vs. Asia Metal Public | THONBURI HEALTHCARE vs. Rich Sport Public | THONBURI HEALTHCARE vs. Home Product Center |
| 2S Metal vs. Chewathai Public | 2S Metal vs. Cho Thavee Public | 2S Metal vs. ASIA Capital Group | 2S Metal vs. CI Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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