Correlation Between Titan Company and Thai Nakarin
Can any of the company-specific risk be diversified away by investing in both Titan Company and Thai Nakarin 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 Titan Company and Thai Nakarin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Company Limited and Thai Nakarin Hospital, you can compare the effects of market volatilities on Titan Company and Thai Nakarin 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 Titan Company with a short position of Thai Nakarin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Company and Thai Nakarin.
Diversification Opportunities for Titan Company and Thai Nakarin
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Titan and Thai is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Titan Company Limited and Thai Nakarin Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Nakarin Hospital and Titan Company 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 Titan Company Limited are associated (or correlated) with Thai Nakarin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Nakarin Hospital has no effect on the direction of Titan Company i.e., Titan Company and Thai Nakarin go up and down completely randomly.
Pair Corralation between Titan Company and Thai Nakarin
Assuming the 90 days trading horizon Titan Company is expected to generate 1.11 times less return on investment than Thai Nakarin. In addition to that, Titan Company is 2.0 times more volatile than Thai Nakarin Hospital. It trades about 0.12 of its total potential returns per unit of risk. Thai Nakarin Hospital is currently generating about 0.26 per unit of volatility. If you would invest 3,568 in Thai Nakarin Hospital on September 5, 2024 and sell it today you would earn a total of 157.00 from holding Thai Nakarin Hospital or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Titan Company Limited vs. Thai Nakarin Hospital
Performance |
| Timeline |
| Titan Limited |
| Thai Nakarin Hospital |
Titan Company and Thai Nakarin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Company and Thai Nakarin
The main advantage of trading using opposite Titan Company and Thai Nakarin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Company position performs unexpectedly, Thai Nakarin 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 Nakarin will offset losses from the drop in Thai Nakarin's long position.| Titan Company vs. BF Investment Limited | Titan Company vs. Jayant Agro Organics | Titan Company vs. Jindal Poly Investment | Titan Company vs. Vidhi Specialty Food |
| Thai Nakarin vs. Vibhavadi Medical Center | Thai Nakarin vs. Ladprao General Hospital | Thai Nakarin vs. Ekachai Medical Care | Thai Nakarin vs. Chularat Hospital 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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