Correlation Between True Public and TPC Power
Can any of the company-specific risk be diversified away by investing in both True Public and TPC Power 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 TPC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between True Public and TPC Power Holding, you can compare the effects of market volatilities on True Public and TPC Power 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 TPC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of True Public and TPC Power.
Diversification Opportunities for True Public and TPC Power
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between True and TPC is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding True Public and TPC Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPC Power Holding 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 TPC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPC Power Holding has no effect on the direction of True Public i.e., True Public and TPC Power go up and down completely randomly.
Pair Corralation between True Public and TPC Power
Assuming the 90 days trading horizon True Public is expected to generate 1.11 times more return on investment than TPC Power. However, True Public is 1.11 times more volatile than TPC Power Holding. It trades about 0.05 of its potential returns per unit of risk. TPC Power Holding is currently generating about -0.06 per unit of risk. If you would invest 770.00 in True Public on December 4, 2024 and sell it today you would earn a total of 340.00 from holding True Public or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
True Public vs. TPC Power Holding
Performance |
| Timeline |
| True Public |
| TPC Power Holding |
True Public and TPC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with True Public and TPC Power
The main advantage of trading using opposite True Public and TPC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if True Public position performs unexpectedly, TPC Power 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 TPC Power will offset losses from the drop in TPC Power'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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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