Correlation Between Thantawan Industry and SCG Packaging
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and SCG Packaging 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 SCG Packaging 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 SCG Packaging Public, you can compare the effects of market volatilities on Thantawan Industry and SCG Packaging 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 SCG Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and SCG Packaging.
Diversification Opportunities for Thantawan Industry and SCG Packaging
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thantawan and SCG is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and SCG Packaging Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG Packaging Public 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 SCG Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG Packaging Public has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and SCG Packaging go up and down completely randomly.
Pair Corralation between Thantawan Industry and SCG Packaging
Assuming the 90 days trading horizon Thantawan Industry Public is expected to under-perform the SCG Packaging. But the stock apears to be less risky and, when comparing its historical volatility, Thantawan Industry Public is 30.66 times less risky than SCG Packaging. The stock trades about -0.02 of its potential returns per unit of risk. The SCG Packaging Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,566 in SCG Packaging Public on September 4, 2024 and sell it today you would lose (3,426) from holding SCG Packaging Public or give up 61.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. SCG Packaging Public
Performance |
| Timeline |
| Thantawan Industry Public |
| SCG Packaging Public |
Thantawan Industry and SCG Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and SCG Packaging
The main advantage of trading using opposite Thantawan Industry and SCG Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, SCG Packaging 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 SCG Packaging will offset losses from the drop in SCG Packaging's long position.| Thantawan Industry vs. Thai Metal Drum | Thantawan Industry vs. Haad Thip Public | Thantawan Industry vs. Sahamitr Pressure Container | Thantawan Industry vs. Ratchthani Leasing Public |
| SCG Packaging vs. AJ Plast Public | SCG Packaging vs. Thai Metal Drum | SCG Packaging vs. Thantawan Industry Public | SCG Packaging vs. Thai Film 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |