Correlation Between Thai Mitsuwa and Unimit Engineering
Can any of the company-specific risk be diversified away by investing in both Thai Mitsuwa and Unimit Engineering 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 Unimit Engineering 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 Unimit Engineering Public, you can compare the effects of market volatilities on Thai Mitsuwa and Unimit Engineering 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 Unimit Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Mitsuwa and Unimit Engineering.
Diversification Opportunities for Thai Mitsuwa and Unimit Engineering
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thai and Unimit is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Unimit Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimit Engineering 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 Unimit Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimit Engineering Public has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Unimit Engineering go up and down completely randomly.
Pair Corralation between Thai Mitsuwa and Unimit Engineering
Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to generate 1.0 times more return on investment than Unimit Engineering. However, Thai Mitsuwa Public is 1.0 times less risky than Unimit Engineering. It trades about 0.04 of its potential returns per unit of risk. Unimit Engineering Public is currently generating about 0.04 per unit of risk. If you would invest 3,298 in Thai Mitsuwa Public on September 3, 2024 and sell it today you would earn a total of 2,952 from holding Thai Mitsuwa Public or generate 89.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Mitsuwa Public vs. Unimit Engineering Public
Performance |
| Timeline |
| Thai Mitsuwa Public |
| Unimit Engineering Public |
Thai Mitsuwa and Unimit Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Mitsuwa and Unimit Engineering
The main advantage of trading using opposite Thai Mitsuwa and Unimit Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Mitsuwa position performs unexpectedly, Unimit Engineering 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 Unimit Engineering will offset losses from the drop in Unimit Engineering's long position.| Thai Mitsuwa vs. Thanachart Capital Public | Thai Mitsuwa vs. T S Flour | Thai Mitsuwa vs. Ubis Public | Thai Mitsuwa vs. Thai Vegetable Oil |
| Unimit Engineering vs. Chewathai Public | Unimit Engineering vs. AIRA Factoring Public | Unimit Engineering vs. Cho Thavee Public | Unimit Engineering vs. G Capital 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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