Correlation Between Thai Mitsuwa and Eastern Technical
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and Eastern Technical 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 Eastern Technical 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 Eastern Technical Engineering, you can compare the effects of market volatilities on Thai Mitsuwa and Eastern Technical 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 Eastern Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and Eastern Technical.
Diversification Opportunities for Thai Mitsuwa and Eastern Technical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and Eastern is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Eastern Technical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Technical 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 Eastern Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Technical has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Eastern Technical go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and Eastern Technical
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to generate 1.0 times more return on investment than Eastern Technical. However, Thai Mitsuwa Public is 1.0 times less risky than Eastern Technical. It trades about 0.07 of its potential returns per unit of risk. Eastern Technical Engineering is currently generating about 0.06 per unit of risk. If you would invest 5,331 in Thai Mitsuwa Public on September 1, 2024 and sell it today you would earn a total of 919.00 from holding Thai Mitsuwa Public or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. Eastern Technical Engineering
Performance |
| Timeline |
| Thai Mitsuwa Public |
| Eastern Technical |
Thai Mitsuwa and Eastern Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and Eastern Technical
The main advantage of trading using opposite Thai Mitsuwa and Eastern Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, Eastern Technical 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 Eastern Technical will offset losses from the drop in Eastern Technical'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 |
| Eastern Technical vs. G Capital Public | Eastern Technical vs. Harn Engineering Solutions | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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