Correlation Between TRC Construction and Haad Thip
Can any of the company-specific risk be diversified away by investing in both TRC Construction and Haad Thip 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 TRC Construction and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRC Construction Public and Haad Thip Public, you can compare the effects of market volatilities on TRC Construction and Haad Thip 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 TRC Construction with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRC Construction and Haad Thip.
Diversification Opportunities for TRC Construction and Haad Thip
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRC and Haad is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding TRC Construction Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and TRC Construction 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 TRC Construction Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of TRC Construction i.e., TRC Construction and Haad Thip go up and down completely randomly.
Pair Corralation between TRC Construction and Haad Thip
Assuming the 90 days trading horizon TRC Construction Public is expected to generate 5.48 times more return on investment than Haad Thip. However, TRC Construction is 5.48 times more volatile than Haad Thip Public. It trades about 0.04 of its potential returns per unit of risk. Haad Thip Public is currently generating about 0.07 per unit of risk. If you would invest 144.00 in TRC Construction Public on September 2, 2024 and sell it today you would earn a total of 4.00 from holding TRC Construction Public or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRC Construction Public vs. Haad Thip Public
Performance |
| Timeline |
| TRC Construction Public |
| Haad Thip Public |
TRC Construction and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRC Construction and Haad Thip
The main advantage of trading using opposite TRC Construction and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRC Construction position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| TRC Construction vs. Tata Steel Public | TRC Construction vs. TTCL Public | TRC Construction vs. Thaire Life Assurance | TRC Construction vs. Thaifoods Group Public |
| Haad Thip vs. MK Restaurant Group | Haad Thip vs. TRC Construction Public | Haad Thip vs. Bangkok Expressway and | Haad Thip vs. Lohakit Metal 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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