Correlation Between TISCO Financial and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Thaifoods Group 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 Thaifoods Group 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 Thaifoods Group Public, you can compare the effects of market volatilities on TISCO Financial and Thaifoods Group 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Thaifoods Group.
Diversification Opportunities for TISCO Financial and Thaifoods Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TISCO and Thaifoods is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of TISCO Financial i.e., TISCO Financial and Thaifoods Group go up and down completely randomly.
Pair Corralation between TISCO Financial and Thaifoods Group
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.1 times more return on investment than Thaifoods Group. However, TISCO Financial Group is 10.25 times less risky than Thaifoods Group. It trades about 0.2 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.21 per unit of risk. If you would invest 9,850 in TISCO Financial Group on November 7, 2024 and sell it today you would earn a total of 200.00 from holding TISCO Financial Group or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Thaifoods Group Public
Performance |
| Timeline |
| TISCO Financial Group |
| Thaifoods Group Public |
TISCO Financial and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Thaifoods Group
The main advantage of trading using opposite TISCO Financial and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group'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 |
| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |