Correlation Between TPI POLENE and Thaifoods Group
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By analyzing existing cross correlation between TPI POLENE POWER and Thaifoods Group Public, you can compare the effects of market volatilities on TPI POLENE and Thaifoods Group 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 TPI POLENE with a short position of Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPI POLENE and Thaifoods Group.
Diversification Opportunities for TPI POLENE and Thaifoods Group
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TPI and Thaifoods is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding TPI POLENE POWER and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group Public and TPI POLENE 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 TPI POLENE POWER are associated (or correlated) with Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of TPI POLENE i.e., TPI POLENE and Thaifoods Group go up and down completely randomly.
Pair Corralation between TPI POLENE and Thaifoods Group
Assuming the 90 days trading horizon TPI POLENE is expected to generate 1.99 times less return on investment than Thaifoods Group. But when comparing it to its historical volatility, TPI POLENE POWER is 1.41 times less risky than Thaifoods Group. It trades about 0.07 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Thaifoods Group Public on September 3, 2024 and sell it today you would lose (39.00) from holding Thaifoods Group Public or give up 9.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPI POLENE POWER vs. Thaifoods Group Public
Performance |
| Timeline |
| TPI POLENE POWER |
| Thaifoods Group Public |
TPI POLENE and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPI POLENE and Thaifoods Group
The main advantage of trading using opposite TPI POLENE and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPI POLENE position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| TPI POLENE vs. TPI Polene Power | TPI POLENE vs. SPCG Public | TPI POLENE vs. CK Power Public | TPI POLENE vs. The Erawan Group |
| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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