Correlation Between Taokaenoi Food and Grand Prix
Can any of the company-specific risk be diversified away by investing in both Taokaenoi Food and Grand Prix 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 Taokaenoi Food and Grand Prix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taokaenoi Food Marketing and Grand Prix International, you can compare the effects of market volatilities on Taokaenoi Food and Grand Prix 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 Taokaenoi Food with a short position of Grand Prix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taokaenoi Food and Grand Prix.
Diversification Opportunities for Taokaenoi Food and Grand Prix
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Taokaenoi and Grand is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Taokaenoi Food Marketing and Grand Prix International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Prix International and Taokaenoi Food 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 Taokaenoi Food Marketing are associated (or correlated) with Grand Prix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Prix International has no effect on the direction of Taokaenoi Food i.e., Taokaenoi Food and Grand Prix go up and down completely randomly.
Pair Corralation between Taokaenoi Food and Grand Prix
Assuming the 90 days trading horizon Taokaenoi Food Marketing is expected to under-perform the Grand Prix. In addition to that, Taokaenoi Food is 2.41 times more volatile than Grand Prix International. It trades about -0.4 of its total potential returns per unit of risk. Grand Prix International is currently generating about -0.02 per unit of volatility. If you would invest 163.00 in Grand Prix International on September 2, 2024 and sell it today you would lose (1.00) from holding Grand Prix International or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taokaenoi Food Marketing vs. Grand Prix International
Performance |
| Timeline |
| Taokaenoi Food Marketing |
| Grand Prix International |
Taokaenoi Food and Grand Prix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taokaenoi Food and Grand Prix
The main advantage of trading using opposite Taokaenoi Food and Grand Prix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taokaenoi Food position performs unexpectedly, Grand Prix 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 Grand Prix will offset losses from the drop in Grand Prix's long position.| Taokaenoi Food vs. MK Restaurant Group | Taokaenoi Food vs. TRC Construction Public | Taokaenoi Food vs. Bangkok Expressway and | Taokaenoi Food vs. Lohakit Metal Public |
| Grand Prix vs. Interlink Communication Public | Grand Prix vs. Aqua Public | Grand Prix vs. BEC World Public | Grand Prix vs. Grande Asset Hotels |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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