Correlation Between TPCS Public and Trinity Watthana
Can any of the company-specific risk be diversified away by investing in both TPCS Public and Trinity Watthana 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 TPCS Public and Trinity Watthana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPCS Public and Trinity Watthana Public, you can compare the effects of market volatilities on TPCS Public and Trinity Watthana 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 TPCS Public with a short position of Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPCS Public and Trinity Watthana.
Diversification Opportunities for TPCS Public and Trinity Watthana
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPCS and Trinity is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding TPCS Public and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana Public and TPCS 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 TPCS Public are associated (or correlated) with Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of TPCS Public i.e., TPCS Public and Trinity Watthana go up and down completely randomly.
Pair Corralation between TPCS Public and Trinity Watthana
Assuming the 90 days trading horizon TPCS Public is expected to generate 0.83 times more return on investment than Trinity Watthana. However, TPCS Public is 1.21 times less risky than Trinity Watthana. It trades about 0.1 of its potential returns per unit of risk. Trinity Watthana Public is currently generating about -0.35 per unit of risk. If you would invest 1,120 in TPCS Public on November 3, 2024 and sell it today you would earn a total of 90.00 from holding TPCS Public or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
TPCS Public vs. Trinity Watthana Public
Performance |
| Timeline |
| TPCS Public |
| Trinity Watthana Public |
TPCS Public and Trinity Watthana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPCS Public and Trinity Watthana
The main advantage of trading using opposite TPCS Public and Trinity Watthana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPCS Public position performs unexpectedly, Trinity Watthana 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 Trinity Watthana will offset losses from the drop in Trinity Watthana's long position.| TPCS Public vs. Thai Textile Industry | TPCS Public vs. Toray Textiles Public | TPCS Public vs. Siam Steel Service | TPCS Public vs. Trinity Watthana Public |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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