Correlation Between Thitikorn Public and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both Thitikorn Public and Ratchthani Leasing 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 Thitikorn Public and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thitikorn Public and Ratchthani Leasing Public, you can compare the effects of market volatilities on Thitikorn Public and Ratchthani Leasing 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 Thitikorn Public with a short position of Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thitikorn Public and Ratchthani Leasing.
Diversification Opportunities for Thitikorn Public and Ratchthani Leasing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thitikorn and Ratchthani is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thitikorn Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani Leasing Public and Thitikorn Public 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 Thitikorn Public are associated (or correlated) with Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Thitikorn Public i.e., Thitikorn Public and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between Thitikorn Public and Ratchthani Leasing
Assuming the 90 days horizon Thitikorn Public is expected to generate 1.0 times more return on investment than Ratchthani Leasing. However, Thitikorn Public is 1.0 times less risky than Ratchthani Leasing. It trades about 0.11 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.11 per unit of risk. If you would invest 492.00 in Thitikorn Public on September 2, 2024 and sell it today you would lose (26.00) from holding Thitikorn Public or give up 5.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thitikorn Public vs. Ratchthani Leasing Public
Performance |
| Timeline |
| Thitikorn Public |
| Ratchthani Leasing Public |
Thitikorn Public and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thitikorn Public and Ratchthani Leasing
The main advantage of trading using opposite Thitikorn Public and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thitikorn Public position performs unexpectedly, Ratchthani Leasing 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.| Thitikorn Public vs. Rojana Industrial Park | Thitikorn Public vs. CPR Gomu Industrial | Thitikorn Public vs. PINTHONG INDUSTRIAL PARK | Thitikorn Public vs. Somboon Advance Technology |
| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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