Correlation Between TISCO Financial and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital Public, you can compare the effects of market volatilities on TISCO Financial and Thanachart Capital 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 Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Thanachart Capital.
Diversification Opportunities for TISCO Financial and Thanachart Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TISCO and Thanachart is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public 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 Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of TISCO Financial i.e., TISCO Financial and Thanachart Capital go up and down completely randomly.
Pair Corralation between TISCO Financial and Thanachart Capital
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.26 times more return on investment than Thanachart Capital. However, TISCO Financial Group is 3.78 times less risky than Thanachart Capital. It trades about -0.12 of its potential returns per unit of risk. Thanachart Capital Public is currently generating about -0.17 per unit of risk. If you would invest 9,700 in TISCO Financial Group on August 29, 2024 and sell it today you would lose (75.00) from holding TISCO Financial Group or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Thanachart Capital Public
Performance |
| Timeline |
| TISCO Financial Group |
| Thanachart Capital Public |
TISCO Financial and Thanachart Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Thanachart Capital
The main advantage of trading using opposite TISCO Financial and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital's long position.| TISCO Financial vs. Thai Energy Storage | TISCO Financial vs. Royal Orchid Hotel | TISCO Financial vs. Grand Canal Land | TISCO Financial vs. PRG Public |
| Thanachart Capital vs. TISCO Financial Group | Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. SCB X Public | Thanachart Capital vs. Kasikornbank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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