Correlation Between Thai Nam and Thai Poly
Can any of the company-specific risk be diversified away by investing in both Thai Nam and Thai Poly 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 Nam and Thai Poly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Nam Plastic and Thai Poly Acrylic, you can compare the effects of market volatilities on Thai Nam and Thai Poly 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 Nam with a short position of Thai Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Nam and Thai Poly.
Diversification Opportunities for Thai Nam and Thai Poly
Almost no diversification
The 3 months correlation between Thai and Thai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thai Nam Plastic and Thai Poly Acrylic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Poly Acrylic and Thai Nam 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 Nam Plastic are associated (or correlated) with Thai Poly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Poly Acrylic has no effect on the direction of Thai Nam i.e., Thai Nam and Thai Poly go up and down completely randomly.
Pair Corralation between Thai Nam and Thai Poly
Assuming the 90 days trading horizon Thai Nam Plastic is expected to generate 0.78 times more return on investment than Thai Poly. However, Thai Nam Plastic is 1.28 times less risky than Thai Poly. It trades about -0.24 of its potential returns per unit of risk. Thai Poly Acrylic is currently generating about -0.21 per unit of risk. If you would invest 107.00 in Thai Nam Plastic on September 3, 2024 and sell it today you would lose (15.00) from holding Thai Nam Plastic or give up 14.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Nam Plastic vs. Thai Poly Acrylic
Performance |
| Timeline |
| Thai Nam Plastic |
| Thai Poly Acrylic |
Thai Nam and Thai Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Nam and Thai Poly
The main advantage of trading using opposite Thai Nam and Thai Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Nam position performs unexpectedly, Thai Poly 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 Poly will offset losses from the drop in Thai Poly's long position.| Thai Nam vs. PTT Public | Thai Nam vs. PTT Exploration and | Thai Nam vs. The Siam Cement | Thai Nam vs. CP ALL Public |
| Thai Poly vs. Thai Metal Drum | Thai Poly vs. Thantawan Industry Public | Thai Poly vs. Univanich Palm Oil | Thai Poly vs. Union Plastic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |