Correlation Between Thai Metal and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Thai Metal and SP Syndicate 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 Thai Metal and SP Syndicate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Metal Drum and SP Syndicate Public, you can compare the effects of market volatilities on Thai Metal and SP Syndicate 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 Thai Metal with a short position of SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Metal and SP Syndicate.
Diversification Opportunities for Thai Metal and SP Syndicate
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and SNP is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thai Metal Drum and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate Public and Thai Metal 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 Thai Metal Drum are associated (or correlated) with SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Thai Metal i.e., Thai Metal and SP Syndicate go up and down completely randomly.
Pair Corralation between Thai Metal and SP Syndicate
Assuming the 90 days trading horizon Thai Metal Drum is expected to generate 116.77 times more return on investment than SP Syndicate. However, Thai Metal is 116.77 times more volatile than SP Syndicate Public. It trades about 0.11 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.22 per unit of risk. If you would invest 2,440 in Thai Metal Drum on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Thai Metal Drum or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Metal Drum vs. SP Syndicate Public
Performance |
| Timeline |
| Thai Metal Drum |
| SP Syndicate Public |
Thai Metal and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Metal and SP Syndicate
The main advantage of trading using opposite Thai Metal and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Metal position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate's long position.| Thai Metal vs. Thantawan Industry Public | Thai Metal vs. Thitikorn Public | Thai Metal vs. Siam Steel Service | Thai Metal vs. Thai Vegetable Oil |
| SP Syndicate vs. TRC Construction Public | SP Syndicate vs. Bangkok Expressway and | SP Syndicate vs. Lohakit Metal Public | SP Syndicate vs. Gunkul Engineering 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |