Correlation Between Thai Mitsuwa and ONE Enterprise
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and ONE Enterprise 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 ONE Enterprise 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 The ONE Enterprise, you can compare the effects of market volatilities on Thai Mitsuwa and ONE Enterprise 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 ONE Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and ONE Enterprise.
Diversification Opportunities for Thai Mitsuwa and ONE Enterprise
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and ONE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and The ONE Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE Enterprise 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 ONE Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE Enterprise has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and ONE Enterprise go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and ONE Enterprise
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to generate 28.8 times more return on investment than ONE Enterprise. However, Thai Mitsuwa is 28.8 times more volatile than The ONE Enterprise. It trades about 0.07 of its potential returns per unit of risk. The ONE Enterprise is currently generating about -0.03 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 | Very Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. The ONE Enterprise
Performance |
| Timeline |
| Thai Mitsuwa Public |
| ONE Enterprise |
Thai Mitsuwa and ONE Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and ONE Enterprise
The main advantage of trading using opposite Thai Mitsuwa and ONE Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, ONE Enterprise 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 ONE Enterprise will offset losses from the drop in ONE Enterprise'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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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