Correlation Between Thai Mitsuwa and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and Autocorp Holding 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 Mitsuwa and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Mitsuwa Public and Autocorp Holding Public, you can compare the effects of market volatilities on Thai Mitsuwa and Autocorp Holding 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 Mitsuwa with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and Autocorp Holding.
Diversification Opportunities for Thai Mitsuwa and Autocorp Holding
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thai and Autocorp is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Thai Mitsuwa 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 Mitsuwa Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Autocorp Holding go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and Autocorp Holding
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to generate 1.0 times more return on investment than Autocorp Holding. However, Thai Mitsuwa Public is 1.0 times less risky than Autocorp Holding. It trades about 0.04 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.04 per unit of risk. If you would invest 3,521 in Thai Mitsuwa Public on December 1, 2024 and sell it today you would earn a total of 2,029 from holding Thai Mitsuwa Public or generate 57.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. Autocorp Holding Public
Performance |
| Timeline |
| Thai Mitsuwa Public |
| Autocorp Holding Public |
Thai Mitsuwa and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and Autocorp Holding
The main advantage of trading using opposite Thai Mitsuwa and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Thai Mitsuwa vs. Sherwood Public | Thai Mitsuwa vs. Thanachart Capital Public | Thai Mitsuwa vs. T S Flour | Thai Mitsuwa vs. Ubis Public |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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