Correlation Between True Public and Thaicom Public
Can any of the company-specific risk be diversified away by investing in both True Public and Thaicom Public 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 True Public and Thaicom Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between True Public and Thaicom Public, you can compare the effects of market volatilities on True Public and Thaicom Public 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 True Public with a short position of Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Public and Thaicom Public.
Diversification Opportunities for True Public and Thaicom Public
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between True and Thaicom is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding True Public and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom Public and True 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 True Public are associated (or correlated) with Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of True Public i.e., True Public and Thaicom Public go up and down completely randomly.
Pair Corralation between True Public and Thaicom Public
Assuming the 90 days trading horizon True Public is expected to generate 41.88 times less return on investment than Thaicom Public. But when comparing it to its historical volatility, True Public is 48.21 times less risky than Thaicom Public. It trades about 0.09 of its potential returns per unit of risk. Thaicom Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,210 in Thaicom Public on November 3, 2024 and sell it today you would lose (70.00) from holding Thaicom Public or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
True Public vs. Thaicom Public
Performance |
| Timeline |
| True Public |
| Thaicom Public |
True Public and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Public and Thaicom Public
The main advantage of trading using opposite True Public and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Public position performs unexpectedly, Thaicom Public 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 Thaicom Public will offset losses from the drop in Thaicom Public's long position.| True Public vs. Advanced Info Service | True Public vs. PTT Public | True Public vs. Charoen Pokphand Foods | True Public vs. SCB X 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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