Correlation Between TRV Rubber and AEON Thana
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By analyzing existing cross correlation between TRV Rubber Products and AEON Thana Sinsap, you can compare the effects of market volatilities on TRV Rubber and AEON Thana 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 TRV Rubber with a short position of AEON Thana. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRV Rubber and AEON Thana.
Diversification Opportunities for TRV Rubber and AEON Thana
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRV and AEON is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TRV Rubber Products and AEON Thana Sinsap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON Thana Sinsap and TRV Rubber 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 TRV Rubber Products are associated (or correlated) with AEON Thana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON Thana Sinsap has no effect on the direction of TRV Rubber i.e., TRV Rubber and AEON Thana go up and down completely randomly.
Pair Corralation between TRV Rubber and AEON Thana
Assuming the 90 days trading horizon TRV Rubber Products is expected to under-perform the AEON Thana. But the stock apears to be less risky and, when comparing its historical volatility, TRV Rubber Products is 23.58 times less risky than AEON Thana. The stock trades about -0.01 of its potential returns per unit of risk. The AEON Thana Sinsap is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 17,085 in AEON Thana Sinsap on September 2, 2024 and sell it today you would lose (4,585) from holding AEON Thana Sinsap or give up 26.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.23% |
| Values | Daily Returns |
TRV Rubber Products vs. AEON Thana Sinsap
Performance |
| Timeline |
| TRV Rubber Products |
| AEON Thana Sinsap |
TRV Rubber and AEON Thana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRV Rubber and AEON Thana
The main advantage of trading using opposite TRV Rubber and AEON Thana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRV Rubber position performs unexpectedly, AEON Thana 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 AEON Thana will offset losses from the drop in AEON Thana's long position.| TRV Rubber vs. Silicon Craft Technology | TRV Rubber vs. Information and Communication | TRV Rubber vs. Healthlead Public | TRV Rubber vs. Bioscience Animal Health |
| AEON Thana vs. East Coast Furnitech | AEON Thana vs. Filter Vision Public | AEON Thana vs. Cho Thavee Public | AEON Thana vs. Akkhie Prakarn 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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