Correlation Between TISCO Financial and Exotic Food
Can any of the company-specific risk be diversified away by investing in both TISCO Financial and Exotic Food 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 Exotic Food 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 Exotic Food Public, you can compare the effects of market volatilities on TISCO Financial and Exotic Food 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 Exotic Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Exotic Food.
Diversification Opportunities for TISCO Financial and Exotic Food
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between TISCO and Exotic is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Exotic Food Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exotic Food 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 Exotic Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exotic Food Public has no effect on the direction of TISCO Financial i.e., TISCO Financial and Exotic Food go up and down completely randomly.
Pair Corralation between TISCO Financial and Exotic Food
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.27 times more return on investment than Exotic Food. However, TISCO Financial Group is 3.66 times less risky than Exotic Food. It trades about 0.02 of its potential returns per unit of risk. Exotic Food Public is currently generating about -0.12 per unit of risk. If you would invest 9,554 in TISCO Financial Group on September 1, 2024 and sell it today you would earn a total of 96.00 from holding TISCO Financial Group or generate 1.0% 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. Exotic Food Public
Performance |
| Timeline |
| TISCO Financial Group |
| Exotic Food Public |
TISCO Financial and Exotic Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Exotic Food
The main advantage of trading using opposite TISCO Financial and Exotic Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial position performs unexpectedly, Exotic Food 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 Exotic Food will offset losses from the drop in Exotic Food'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 |
| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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