Correlation Between Trinity Watthana and Thai Textile
Can any of the company-specific risk be diversified away by investing in both Trinity Watthana and Thai Textile 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 Trinity Watthana and Thai Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trinity Watthana Public and Thai Textile Industry, you can compare the effects of market volatilities on Trinity Watthana and Thai Textile 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 Trinity Watthana with a short position of Thai Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trinity Watthana and Thai Textile.
Diversification Opportunities for Trinity Watthana and Thai Textile
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trinity and Thai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Watthana Public and Thai Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Textile Industry and Trinity Watthana 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 Trinity Watthana Public are associated (or correlated) with Thai Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Textile Industry has no effect on the direction of Trinity Watthana i.e., Trinity Watthana and Thai Textile go up and down completely randomly.
Pair Corralation between Trinity Watthana and Thai Textile
Assuming the 90 days trading horizon Trinity Watthana Public is expected to under-perform the Thai Textile. But the stock apears to be less risky and, when comparing its historical volatility, Trinity Watthana Public is 1.61 times less risky than Thai Textile. The stock trades about -0.35 of its potential returns per unit of risk. The Thai Textile Industry is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,550 in Thai Textile Industry on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Thai Textile Industry or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Trinity Watthana Public vs. Thai Textile Industry
Performance |
| Timeline |
| Trinity Watthana Public |
| Thai Textile Industry |
Trinity Watthana and Thai Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trinity Watthana and Thai Textile
The main advantage of trading using opposite Trinity Watthana and Thai Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trinity Watthana position performs unexpectedly, Thai Textile 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 Thai Textile will offset losses from the drop in Thai Textile's long position.| Trinity Watthana vs. Asia Plus Group | Trinity Watthana vs. Thitikorn Public | Trinity Watthana vs. TISCO Financial Group | Trinity Watthana vs. KGI Securities Public |
| Thai Textile vs. Thanulux Public | Thai Textile vs. Union Pioneer Public | Thai Textile vs. Thai Rayon Public | Thai Textile vs. Thai Rung Union |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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