Correlation Between TISCO Financial and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Somboon Advance 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 Somboon Advance 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 Somboon Advance Technology, you can compare the effects of market volatilities on TISCO Financial and Somboon Advance 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 Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Somboon Advance.
Diversification Opportunities for TISCO Financial and Somboon Advance
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TISCO and Somboon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech 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 Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of TISCO Financial i.e., TISCO Financial and Somboon Advance go up and down completely randomly.
Pair Corralation between TISCO Financial and Somboon Advance
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.29 times more return on investment than Somboon Advance. However, TISCO Financial Group is 3.51 times less risky than Somboon Advance. It trades about 0.04 of its potential returns per unit of risk. Somboon Advance Technology is currently generating about -0.42 per unit of risk. If you would invest 9,625 in TISCO Financial Group on August 31, 2024 and sell it today you would earn a total of 25.00 from holding TISCO Financial Group or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TISCO Financial Group vs. Somboon Advance Technology
Performance |
| Timeline |
| TISCO Financial Group |
| Somboon Advance Tech |
TISCO Financial and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Somboon Advance
The main advantage of trading using opposite TISCO Financial and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance'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 |
| Somboon Advance vs. TRC Construction Public | Somboon Advance vs. Bangkok Expressway and | Somboon Advance vs. Lohakit Metal Public | Somboon Advance vs. Gunkul Engineering 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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