Correlation Between Thanulux Public and Thai Textile
Can any of the company-specific risk be diversified away by investing in both Thanulux Public 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 Thanulux Public and Thai Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanulux Public and Thai Textile Industry, you can compare the effects of market volatilities on Thanulux Public 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 Thanulux Public with a short position of Thai Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanulux Public and Thai Textile.
Diversification Opportunities for Thanulux Public and Thai Textile
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thanulux and Thai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thanulux 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 Thanulux Public 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 Thanulux 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 Thanulux Public i.e., Thanulux Public and Thai Textile go up and down completely randomly.
Pair Corralation between Thanulux Public and Thai Textile
Assuming the 90 days trading horizon Thanulux Public is expected to under-perform the Thai Textile. But the stock apears to be less risky and, when comparing its historical volatility, Thanulux Public is 1.1 times less risky than Thai Textile. The stock trades about -0.03 of its potential returns per unit of risk. The Thai Textile Industry is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Thai Textile Industry on November 3, 2024 and sell it today you would earn a total of 75.00 from holding Thai Textile Industry or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanulux Public vs. Thai Textile Industry
Performance |
| Timeline |
| Thanulux Public |
| Thai Textile Industry |
Thanulux Public and Thai Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanulux Public and Thai Textile
The main advantage of trading using opposite Thanulux Public and Thai Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanulux Public 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.| Thanulux Public vs. Thai Rayon Public | Thanulux Public vs. Thai Poly Acrylic | Thanulux Public vs. Saha Union Public | Thanulux Public vs. Thai Textile Industry |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |