Correlation Between Thantawan Industry and Thai OPP
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Thai OPP 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 OPP 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 OPP Public, you can compare the effects of market volatilities on Thantawan Industry and Thai OPP 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 OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Thai OPP.
Diversification Opportunities for Thantawan Industry and Thai OPP
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thantawan and Thai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP 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 Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Thai OPP go up and down completely randomly.
Pair Corralation between Thantawan Industry and Thai OPP
Assuming the 90 days trading horizon Thantawan Industry is expected to generate 156.83 times less return on investment than Thai OPP. But when comparing it to its historical volatility, Thantawan Industry Public is 75.31 times less risky than Thai OPP. It trades about 0.04 of its potential returns per unit of risk. Thai OPP Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,476 in Thai OPP Public on September 3, 2024 and sell it today you would earn a total of 424.00 from holding Thai OPP Public or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.3% |
| Values | Daily Returns |
Thantawan Industry Public vs. Thai OPP Public
Performance |
| Timeline |
| Thantawan Industry Public |
| Thai OPP Public |
Thantawan Industry and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thantawan Industry and Thai OPP
The main advantage of trading using opposite Thantawan Industry and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Thai OPP 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 OPP will offset losses from the drop in Thai OPP'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 |
| Thai OPP vs. Mena Transport Public | Thai OPP vs. Sun Vending Technology | Thai OPP vs. Peerapat Technology Public | Thai OPP vs. Silicon Craft Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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