Correlation Between THRACE PLASTICS and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS and Thoresen Thai 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 THRACE PLASTICS and Thoresen Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and Thoresen Thai Agencies, you can compare the effects of market volatilities on THRACE PLASTICS and Thoresen Thai 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 THRACE PLASTICS with a short position of Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and Thoresen Thai.
Diversification Opportunities for THRACE PLASTICS and Thoresen Thai
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THRACE and Thoresen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies and THRACE PLASTICS 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 THRACE PLASTICS are associated (or correlated) with Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of THRACE PLASTICS i.e., THRACE PLASTICS and Thoresen Thai go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and Thoresen Thai
Assuming the 90 days trading horizon THRACE PLASTICS is expected to generate 0.37 times more return on investment than Thoresen Thai. However, THRACE PLASTICS is 2.73 times less risky than Thoresen Thai. It trades about 0.16 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about -0.07 per unit of risk. If you would invest 387.00 in THRACE PLASTICS on November 3, 2024 and sell it today you would earn a total of 20.00 from holding THRACE PLASTICS or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
THRACE PLASTICS vs. Thoresen Thai Agencies
Performance |
| Timeline |
| THRACE PLASTICS |
| Thoresen Thai Agencies |
THRACE PLASTICS and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and Thoresen Thai
The main advantage of trading using opposite THRACE PLASTICS and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc | THRACE PLASTICS vs. Apple Inc |
| Thoresen Thai vs. United Insurance Holdings | Thoresen Thai vs. X FAB Silicon Foundries | Thoresen Thai vs. INSURANCE AUST GRP | Thoresen Thai vs. Reinsurance Group of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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