Correlation Between Thai Metal and Thai Film
Can any of the company-specific risk be diversified away by investing in both Thai Metal and Thai Film 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 Thai Film 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 Thai Film Industries, you can compare the effects of market volatilities on Thai Metal and Thai Film 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 Thai Film. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Metal and Thai Film.
Diversification Opportunities for Thai Metal and Thai Film
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Thai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Thai Metal Drum and Thai Film Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Film Industries 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 Thai Film. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Film Industries has no effect on the direction of Thai Metal i.e., Thai Metal and Thai Film go up and down completely randomly.
Pair Corralation between Thai Metal and Thai Film
Assuming the 90 days trading horizon Thai Metal Drum is expected to generate 1.4 times more return on investment than Thai Film. However, Thai Metal is 1.4 times more volatile than Thai Film Industries. It trades about 0.06 of its potential returns per unit of risk. Thai Film Industries is currently generating about 0.04 per unit of risk. If you would invest 2,149 in Thai Metal Drum on September 3, 2024 and sell it today you would earn a total of 311.00 from holding Thai Metal Drum or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.17% |
| Values | Daily Returns |
Thai Metal Drum vs. Thai Film Industries
Performance |
| Timeline |
| Thai Metal Drum |
| Thai Film Industries |
Thai Metal and Thai Film Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Metal and Thai Film
The main advantage of trading using opposite Thai Metal and Thai Film positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Metal position performs unexpectedly, Thai Film 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 Film will offset losses from the drop in Thai Film'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 |
| Thai Film vs. Thai Reinsurance Public | Thai Film vs. STPI Public | Thai Film vs. Siri Prime Office | Thai Film vs. Thoresen Thai Agencies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |