Correlation Between Thanapiriya Public and Techno Medical
Can any of the company-specific risk be diversified away by investing in both Thanapiriya Public and Techno Medical 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 Thanapiriya Public and Techno Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanapiriya Public and Techno Medical Public, you can compare the effects of market volatilities on Thanapiriya Public and Techno Medical 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 Thanapiriya Public with a short position of Techno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanapiriya Public and Techno Medical.
Diversification Opportunities for Thanapiriya Public and Techno Medical
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thanapiriya and Techno is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thanapiriya Public and Techno Medical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Medical Public and Thanapiriya 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 Thanapiriya Public are associated (or correlated) with Techno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Medical Public has no effect on the direction of Thanapiriya Public i.e., Thanapiriya Public and Techno Medical go up and down completely randomly.
Pair Corralation between Thanapiriya Public and Techno Medical
Assuming the 90 days trading horizon Thanapiriya Public is expected to generate 1.14 times more return on investment than Techno Medical. However, Thanapiriya Public is 1.14 times more volatile than Techno Medical Public. It trades about -0.05 of its potential returns per unit of risk. Techno Medical Public is currently generating about -0.13 per unit of risk. If you would invest 366.00 in Thanapiriya Public on September 13, 2024 and sell it today you would lose (24.00) from holding Thanapiriya Public or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanapiriya Public vs. Techno Medical Public
Performance |
| Timeline |
| Thanapiriya Public |
| Techno Medical Public |
Thanapiriya Public and Techno Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanapiriya Public and Techno Medical
The main advantage of trading using opposite Thanapiriya Public and Techno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanapiriya Public position performs unexpectedly, Techno Medical 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 Techno Medical will offset losses from the drop in Techno Medical's long position.| Thanapiriya Public vs. Airports of Thailand | Thanapiriya Public vs. CP ALL Public | Thanapiriya Public vs. Charoen Pokphand Foods | Thanapiriya Public vs. Bangkok Dusit Medical |
| Techno Medical vs. Tata Steel Public | Techno Medical vs. TTCL Public | Techno Medical vs. Thaifoods Group Public | Techno Medical vs. TMT Steel 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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