Correlation Between Thantawan Industry and Thitikorn Public
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Thitikorn Public 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 Thitikorn Public 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 Thitikorn Public, you can compare the effects of market volatilities on Thantawan Industry and Thitikorn Public 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 Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Thitikorn Public.
Diversification Opportunities for Thantawan Industry and Thitikorn Public
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thantawan and Thitikorn is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Thitikorn Public go up and down completely randomly.
Pair Corralation between Thantawan Industry and Thitikorn Public
Assuming the 90 days trading horizon Thantawan Industry Public is expected to generate 0.73 times more return on investment than Thitikorn Public. However, Thantawan Industry Public is 1.37 times less risky than Thitikorn Public. It trades about -0.04 of its potential returns per unit of risk. Thitikorn Public is currently generating about -0.13 per unit of risk. If you would invest 2,900 in Thantawan Industry Public on September 2, 2024 and sell it today you would lose (25.00) from holding Thantawan Industry Public or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thantawan Industry Public vs. Thitikorn Public
Performance |
| Timeline |
| Thantawan Industry Public |
| Thitikorn Public |
Thantawan Industry and Thitikorn Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and Thitikorn Public
The main advantage of trading using opposite Thantawan Industry and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Thitikorn Public 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 Thitikorn Public will offset losses from the drop in Thitikorn Public's long position.| Thantawan Industry vs. AAPICO Hitech Public | Thantawan Industry vs. AP Public | Thantawan Industry vs. Aikchol Hospital Public | Thantawan Industry vs. Bank of Ayudhya |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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