Correlation Between Thai Rung and Sanko Diecasting
Can any of the company-specific risk be diversified away by investing in both Thai Rung and Sanko Diecasting 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 Thai Rung and Sanko Diecasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Rung Union and Sanko Diecasting Public, you can compare the effects of market volatilities on Thai Rung and Sanko Diecasting 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 Thai Rung with a short position of Sanko Diecasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Rung and Sanko Diecasting.
Diversification Opportunities for Thai Rung and Sanko Diecasting
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thai and Sanko is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Thai Rung Union and Sanko Diecasting Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanko Diecasting Public and Thai Rung 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 Thai Rung Union are associated (or correlated) with Sanko Diecasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanko Diecasting Public has no effect on the direction of Thai Rung i.e., Thai Rung and Sanko Diecasting go up and down completely randomly.
Pair Corralation between Thai Rung and Sanko Diecasting
Assuming the 90 days trading horizon Thai Rung is expected to generate 1.05 times less return on investment than Sanko Diecasting. But when comparing it to its historical volatility, Thai Rung Union is 1.0 times less risky than Sanko Diecasting. It trades about 0.04 of its potential returns per unit of risk. Sanko Diecasting Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 126.00 in Sanko Diecasting Public on November 5, 2024 and sell it today you would lose (12.00) from holding Sanko Diecasting Public or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Thai Rung Union vs. Sanko Diecasting Public
Performance |
| Timeline |
| Thai Rung Union |
| Sanko Diecasting Public |
Thai Rung and Sanko Diecasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Rung and Sanko Diecasting
The main advantage of trading using opposite Thai Rung and Sanko Diecasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Rung position performs unexpectedly, Sanko Diecasting 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 Sanko Diecasting will offset losses from the drop in Sanko Diecasting's long position.| Thai Rung vs. Thoresen Thai Agencies | Thai Rung vs. Regional Container Lines | Thai Rung vs. Vanachai Group Public | Thai Rung vs. Thai Vegetable Oil |
| Sanko Diecasting vs. Thai Stanley Electric | Sanko Diecasting vs. Somboon Advance Technology | Sanko Diecasting vs. PCS Machine Group | Sanko Diecasting vs. Fortune Parts Industry |
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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