Correlation Between Thai Metal and Winnergy Medical
Can any of the company-specific risk be diversified away by investing in both Thai Metal and Winnergy Medical 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 Winnergy Medical 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 Winnergy Medical Public, you can compare the effects of market volatilities on Thai Metal and Winnergy Medical 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 Winnergy Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Metal and Winnergy Medical.
Diversification Opportunities for Thai Metal and Winnergy Medical
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Winnergy is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thai Metal Drum and Winnergy Medical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnergy Medical 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 Winnergy Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnergy Medical Public has no effect on the direction of Thai Metal i.e., Thai Metal and Winnergy Medical go up and down completely randomly.
Pair Corralation between Thai Metal and Winnergy Medical
Assuming the 90 days trading horizon Thai Metal Drum is expected to generate 0.35 times more return on investment than Winnergy Medical. However, Thai Metal Drum is 2.85 times less risky than Winnergy Medical. It trades about 0.04 of its potential returns per unit of risk. Winnergy Medical Public is currently generating about -0.41 per unit of risk. If you would invest 2,430 in Thai Metal Drum on November 2, 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 | 95.45% |
| Values | Daily Returns |
Thai Metal Drum vs. Winnergy Medical Public
Performance |
| Timeline |
| Thai Metal Drum |
| Winnergy Medical Public |
Thai Metal and Winnergy Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Metal and Winnergy Medical
The main advantage of trading using opposite Thai Metal and Winnergy Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Metal position performs unexpectedly, Winnergy Medical 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 Winnergy Medical will offset losses from the drop in Winnergy Medical'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 |
| Winnergy Medical vs. Winner Group Enterprise | Winnergy Medical vs. Vintcom Technology PCL | Winnergy Medical vs. Techno Medical Public | Winnergy Medical vs. Silicon Craft Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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