Correlation Between Thantawan Industry and Thai Coating
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Thai Coating 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 Thai Coating 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 Thai Coating Industrial, you can compare the effects of market volatilities on Thantawan Industry and Thai Coating 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 Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Thai Coating.
Diversification Opportunities for Thantawan Industry and Thai Coating
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thantawan and Thai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial 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 Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Thai Coating go up and down completely randomly.
Pair Corralation between Thantawan Industry and Thai Coating
Assuming the 90 days trading horizon Thantawan Industry Public is expected to under-perform the Thai Coating. But the stock apears to be less risky and, when comparing its historical volatility, Thantawan Industry Public is 10.79 times less risky than Thai Coating. The stock trades about -0.05 of its potential returns per unit of risk. The Thai Coating Industrial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,525 in Thai Coating Industrial on September 12, 2024 and sell it today you would lose (85.00) from holding Thai Coating Industrial or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. Thai Coating Industrial
Performance |
| Timeline |
| Thantawan Industry Public |
| Thai Coating Industrial |
Thantawan Industry and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and Thai Coating
The main advantage of trading using opposite Thantawan Industry and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Thai Coating 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 Coating will offset losses from the drop in Thai Coating'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 |
| Thai Coating vs. Thantawan Industry Public | Thai Coating vs. The Erawan Group | Thai Coating vs. Jay Mart Public | Thai Coating 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 CEOs Directory module to screen CEOs from public companies around the world.
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