Correlation Between Thai Mitsuwa and Qualitech Public
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and Qualitech Public 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 Qualitech Public 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 Qualitech Public, you can compare the effects of market volatilities on Thai Mitsuwa and Qualitech Public 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 Qualitech Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and Qualitech Public.
Diversification Opportunities for Thai Mitsuwa and Qualitech Public
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Qualitech is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Qualitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualitech 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 Qualitech Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualitech Public has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Qualitech Public go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and Qualitech Public
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to under-perform the Qualitech Public. But the stock apears to be less risky and, when comparing its historical volatility, Thai Mitsuwa Public is 1.0 times less risky than Qualitech Public. The stock trades about -0.03 of its potential returns per unit of risk. The Qualitech Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 206.00 in Qualitech Public on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Qualitech Public or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. Qualitech Public
Performance |
| Timeline |
| Thai Mitsuwa Public |
| Qualitech Public |
Thai Mitsuwa and Qualitech Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and Qualitech Public
The main advantage of trading using opposite Thai Mitsuwa and Qualitech Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, Qualitech Public 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 Qualitech Public will offset losses from the drop in Qualitech Public's long position.| Thai Mitsuwa vs. Moong Pattana International | Thai Mitsuwa vs. Prodigy Public | Thai Mitsuwa vs. Thai Ha Public | Thai Mitsuwa vs. Kingsmen CMTI 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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