Correlation Between TISCO Financial and Thitikorn Public
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Thitikorn Public 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 Thitikorn Public 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 Thitikorn Public, you can compare the effects of market volatilities on TISCO Financial and Thitikorn Public 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 Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Thitikorn Public.
Diversification Opportunities for TISCO Financial and Thitikorn Public
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TISCO and Thitikorn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of TISCO Financial i.e., TISCO Financial and Thitikorn Public go up and down completely randomly.
Pair Corralation between TISCO Financial and Thitikorn Public
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.25 times more return on investment than Thitikorn Public. However, TISCO Financial Group is 4.03 times less risky than Thitikorn Public. It trades about 0.04 of its potential returns per unit of risk. Thitikorn Public is currently generating about -0.16 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 | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Thitikorn Public
Performance |
| Timeline |
| TISCO Financial Group |
| Thitikorn Public |
TISCO Financial and Thitikorn Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Thitikorn Public
The main advantage of trading using opposite TISCO Financial and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Thitikorn Public 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 Thitikorn Public will offset losses from the drop in Thitikorn Public'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 |
| Thitikorn Public vs. TISCO Financial Group | Thitikorn Public vs. SCB X Public | Thitikorn Public vs. Bangkok Bank 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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