Correlation Between Thai Mitsuwa and Business Online
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and Business Online 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 Business Online 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 Business Online PCL, you can compare the effects of market volatilities on Thai Mitsuwa and Business Online 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 Business Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and Business Online.
Diversification Opportunities for Thai Mitsuwa and Business Online
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and Business is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Business Online PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Business Online PCL 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 Business Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Business Online PCL has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Business Online go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and Business Online
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to under-perform the Business Online. But the stock apears to be less risky and, when comparing its historical volatility, Thai Mitsuwa Public is 1.17 times less risky than Business Online. The stock trades about -0.05 of its potential returns per unit of risk. The Business Online PCL is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Business Online PCL on August 28, 2024 and sell it today you would lose (10.00) from holding Business Online PCL or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. Business Online PCL
Performance |
| Timeline |
| Thai Mitsuwa Public |
| Business Online PCL |
Thai Mitsuwa and Business Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and Business Online
The main advantage of trading using opposite Thai Mitsuwa and Business Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, Business Online 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 Business Online will offset losses from the drop in Business Online'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 |
| Business Online vs. QTC Energy Public | Business Online vs. Premier Technology Public | Business Online vs. Sea Oil Public | Business Online vs. The Erawan Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |