Correlation Between TISCO Financial and President Automobile
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and President Automobile 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 TISCO Financial and President Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TISCO Financial Group and President Automobile Industries, you can compare the effects of market volatilities on TISCO Financial and President Automobile 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 TISCO Financial with a short position of President Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and President Automobile.
Diversification Opportunities for TISCO Financial and President Automobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TISCO and President is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and President Automobile Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on President Automobile and TISCO Financial 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 TISCO Financial Group are associated (or correlated) with President Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of President Automobile has no effect on the direction of TISCO Financial i.e., TISCO Financial and President Automobile go up and down completely randomly.
Pair Corralation between TISCO Financial and President Automobile
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.18 times more return on investment than President Automobile. However, TISCO Financial Group is 5.52 times less risky than President Automobile. It trades about 0.0 of its potential returns per unit of risk. President Automobile Industries is currently generating about -0.14 per unit of risk. If you would invest 9,650 in TISCO Financial Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding TISCO Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. President Automobile Industrie
Performance |
| Timeline |
| TISCO Financial Group |
| President Automobile |
TISCO Financial and President Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and President Automobile
The main advantage of trading using opposite TISCO Financial and President Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, President Automobile 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 President Automobile will offset losses from the drop in President Automobile's long position.| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank Public |
| President Automobile vs. Phol Dhanya Public | President Automobile vs. PTT Oil and | President Automobile vs. Pico Public | President Automobile vs. Pioneer Motor Public |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |