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
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between TISCO and Thanachart is -0.07. 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 is expected to generate 1.09 times less return on investment than Thanachart Capital. But when comparing it to its historical volatility, TISCO Financial Group is 1.89 times less risky than Thanachart Capital. It trades about 0.11 of its potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,925 in Thanachart Capital Public on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Thanachart Capital Public or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| 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. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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