Correlation Between Techno Medical and Itthirit Nice
Can any of the company-specific risk be diversified away by investing in both Techno Medical and Itthirit Nice 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 Techno Medical and Itthirit Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techno Medical Public and Itthirit Nice Corp, you can compare the effects of market volatilities on Techno Medical and Itthirit Nice 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 Techno Medical with a short position of Itthirit Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Medical and Itthirit Nice.
Diversification Opportunities for Techno Medical and Itthirit Nice
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Techno and Itthirit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Techno Medical Public and Itthirit Nice Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itthirit Nice Corp and Techno Medical 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 Techno Medical Public are associated (or correlated) with Itthirit Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itthirit Nice Corp has no effect on the direction of Techno Medical i.e., Techno Medical and Itthirit Nice go up and down completely randomly.
Pair Corralation between Techno Medical and Itthirit Nice
Assuming the 90 days horizon Techno Medical is expected to generate 1.15 times less return on investment than Itthirit Nice. But when comparing it to its historical volatility, Techno Medical Public is 1.0 times less risky than Itthirit Nice. It trades about 0.03 of its potential returns per unit of risk. Itthirit Nice Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Itthirit Nice Corp on December 10, 2024 and sell it today you would lose (130.00) from holding Itthirit Nice Corp or give up 42.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Techno Medical Public vs. Itthirit Nice Corp
Performance |
| Timeline |
| Techno Medical Public |
| Itthirit Nice Corp |
Techno Medical and Itthirit Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Medical and Itthirit Nice
The main advantage of trading using opposite Techno Medical and Itthirit Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Medical position performs unexpectedly, Itthirit Nice 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 Itthirit Nice will offset losses from the drop in Itthirit Nice's long position.| Techno Medical vs. S P V | Techno Medical vs. Thanapiriya Public | Techno Medical vs. Ekachai Medical Care | Techno Medical vs. Megachem Public |
| Itthirit Nice vs. PTT Global Chemical | Itthirit Nice vs. Fine Metal Technologies | Itthirit Nice vs. Digital Telecommunications Infrastructure | Itthirit Nice vs. Information and Communication |
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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