Correlation Between Thantawan Industry and Quality Construction
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Quality Construction 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 Quality Construction 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 Quality Construction Products, you can compare the effects of market volatilities on Thantawan Industry and Quality Construction 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 Quality Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Quality Construction.
Diversification Opportunities for Thantawan Industry and Quality Construction
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thantawan and Quality is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Quality Construction Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quality Construction 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 Quality Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quality Construction has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Quality Construction go up and down completely randomly.
Pair Corralation between Thantawan Industry and Quality Construction
Assuming the 90 days trading horizon Thantawan Industry Public is expected to generate 0.56 times more return on investment than Quality Construction. However, Thantawan Industry Public is 1.77 times less risky than Quality Construction. It trades about 0.04 of its potential returns per unit of risk. Quality Construction Products is currently generating about -0.06 per unit of risk. If you would invest 2,584 in Thantawan Industry Public on September 12, 2024 and sell it today you would earn a total of 291.00 from holding Thantawan Industry Public or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. Quality Construction Products
Performance |
| Timeline |
| Thantawan Industry Public |
| Quality Construction |
Thantawan Industry and Quality Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and Quality Construction
The main advantage of trading using opposite Thantawan Industry and Quality Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Quality Construction 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 Quality Construction will offset losses from the drop in Quality Construction'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 |
| Quality Construction vs. Thantawan Industry Public | Quality Construction vs. The Erawan Group | Quality Construction vs. Jay Mart Public | Quality Construction vs. Airports of Thailand |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |