Correlation Between Thantawan Industry and Capital Engineering
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Capital Engineering 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 Thantawan Industry and Capital Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thantawan Industry Public and Capital Engineering Network, you can compare the effects of market volatilities on Thantawan Industry and Capital Engineering 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 Thantawan Industry with a short position of Capital Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Capital Engineering.
Diversification Opportunities for Thantawan Industry and Capital Engineering
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thantawan and Capital is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Capital Engineering Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Engineering and Thantawan Industry 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 Thantawan Industry Public are associated (or correlated) with Capital Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Engineering has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Capital Engineering go up and down completely randomly.
Pair Corralation between Thantawan Industry and Capital Engineering
Assuming the 90 days trading horizon Thantawan Industry Public is expected to under-perform the Capital Engineering. In addition to that, Thantawan Industry is 1.37 times more volatile than Capital Engineering Network. It trades about -0.03 of its total potential returns per unit of risk. Capital Engineering Network is currently generating about 0.13 per unit of volatility. If you would invest 195.00 in Capital Engineering Network on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Capital Engineering Network or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. Capital Engineering Network
Performance |
| Timeline |
| Thantawan Industry Public |
| Capital Engineering |
Thantawan Industry and Capital Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and Capital Engineering
The main advantage of trading using opposite Thantawan Industry and Capital Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Capital Engineering 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 Capital Engineering will offset losses from the drop in Capital Engineering's long position.| Thantawan Industry vs. The Erawan Group | Thantawan Industry vs. Jay Mart Public | Thantawan Industry vs. Airports of Thailand | Thantawan Industry vs. Eastern Technical Engineering |
| Capital Engineering vs. Gratitude Infinite Public | Capital Engineering vs. Christiani Nielsen Public | Capital Engineering vs. Country Group Holdings | Capital Engineering vs. BJC Heavy Industries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |