Correlation Between TISCO Financial and Thai Union
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Thai Union 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 Thai Union 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 Thai Union Group, you can compare the effects of market volatilities on TISCO Financial and Thai Union 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 Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Thai Union.
Diversification Opportunities for TISCO Financial and Thai Union
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between TISCO and Thai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group 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 Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of TISCO Financial i.e., TISCO Financial and Thai Union go up and down completely randomly.
Pair Corralation between TISCO Financial and Thai Union
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.21 times more return on investment than Thai Union. However, TISCO Financial Group is 4.81 times less risky than Thai Union. It trades about -0.15 of its potential returns per unit of risk. Thai Union Group is currently generating about -0.33 per unit of risk. If you would invest 9,700 in TISCO Financial Group on August 30, 2024 and sell it today you would lose (100.00) from holding TISCO Financial Group or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Thai Union Group
Performance |
| Timeline |
| TISCO Financial Group |
| Thai Union Group |
TISCO Financial and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Thai Union
The main advantage of trading using opposite TISCO Financial and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Thai Union 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 Thai Union will offset losses from the drop in Thai Union'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 |
| Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public | Thai Union vs. Minor International Public | Thai Union vs. Advanced Info Service |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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