Correlation Between Thai OPP and Thai Poly
Can any of the company-specific risk be diversified away by investing in both Thai OPP 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 OPP 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 OPP Public and Thai Poly Acrylic, you can compare the effects of market volatilities on Thai OPP 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 OPP with a short position of Thai Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai OPP and Thai Poly.
Diversification Opportunities for Thai OPP and Thai Poly
Significant diversification
The 3 months correlation between Thai and Thai is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Thai OPP Public 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 OPP 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 OPP Public 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 OPP i.e., Thai OPP and Thai Poly go up and down completely randomly.
Pair Corralation between Thai OPP and Thai Poly
If you would invest 16,900 in Thai OPP Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Thai OPP Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thai OPP Public vs. Thai Poly Acrylic
Performance |
| Timeline |
| Thai OPP Public |
| Thai Poly Acrylic |
Thai OPP and Thai Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai OPP and Thai Poly
The main advantage of trading using opposite Thai OPP and Thai Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai OPP 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 OPP vs. Mena Transport Public | Thai OPP vs. Sun Vending Technology | Thai OPP vs. Peerapat Technology Public | Thai OPP vs. Silicon Craft Technology |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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