Correlation Between TISCO Financial and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Srisawad Power 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 Srisawad Power 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 Srisawad Power 1979, you can compare the effects of market volatilities on TISCO Financial and Srisawad Power 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 Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Srisawad Power.
Diversification Opportunities for TISCO Financial and Srisawad Power
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TISCO and Srisawad is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 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 Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of TISCO Financial i.e., TISCO Financial and Srisawad Power go up and down completely randomly.
Pair Corralation between TISCO Financial and Srisawad Power
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.11 times more return on investment than Srisawad Power. However, TISCO Financial Group is 8.89 times less risky than Srisawad Power. It trades about 0.0 of its potential returns per unit of risk. Srisawad Power 1979 is currently generating about -0.08 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Srisawad Power 1979
Performance |
| Timeline |
| TISCO Financial Group |
| Srisawad Power 1979 |
TISCO Financial and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Srisawad Power
The main advantage of trading using opposite TISCO Financial and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power's long position.The idea behind TISCO Financial Group and Srisawad Power 1979 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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