Correlation Between TPI Polene and Thai Solar
Can any of the company-specific risk be diversified away by investing in both TPI Polene and Thai Solar 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 TPI Polene and Thai Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPI Polene Power and Thai Solar Energy, you can compare the effects of market volatilities on TPI Polene and Thai Solar 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 Thai Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPI Polene and Thai Solar.
Diversification Opportunities for TPI Polene and Thai Solar
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TPI and Thai is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding TPI Polene Power and Thai Solar Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Solar Energy 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 Thai Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Solar Energy has no effect on the direction of TPI Polene i.e., TPI Polene and Thai Solar go up and down completely randomly.
Pair Corralation between TPI Polene and Thai Solar
Assuming the 90 days trading horizon TPI Polene Power is expected to generate 0.22 times more return on investment than Thai Solar. However, TPI Polene Power is 4.62 times less risky than Thai Solar. It trades about 0.06 of its potential returns per unit of risk. Thai Solar Energy is currently generating about -0.47 per unit of risk. If you would invest 296.00 in TPI Polene Power on November 2, 2024 and sell it today you would earn a total of 2.00 from holding TPI Polene Power or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TPI Polene Power vs. Thai Solar Energy
Performance |
| Timeline |
| TPI Polene Power |
| Thai Solar Energy |
TPI Polene and Thai Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPI Polene and Thai Solar
The main advantage of trading using opposite TPI Polene and Thai Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPI Polene position performs unexpectedly, Thai Solar 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 Solar will offset losses from the drop in Thai Solar's long position.| TPI Polene vs. Ratch Group Public | TPI Polene vs. BCPG Public | TPI Polene vs. Gulf Energy Development | TPI Polene vs. BTS Group Holdings |
| Thai Solar vs. BCPG Public | Thai Solar vs. CK Power Public | Thai Solar vs. TPI Polene Power | Thai Solar vs. Earth Tech Environment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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