Correlation Between Thai Steel and Asia Sermkij
Can any of the company-specific risk be diversified away by investing in both Thai Steel and Asia Sermkij 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 Steel and Asia Sermkij into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Steel Cable and Asia Sermkij Leasing, you can compare the effects of market volatilities on Thai Steel and Asia Sermkij 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 Steel with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Steel and Asia Sermkij.
Diversification Opportunities for Thai Steel and Asia Sermkij
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Asia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thai Steel Cable and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing and Thai Steel 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 Steel Cable are associated (or correlated) with Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of Thai Steel i.e., Thai Steel and Asia Sermkij go up and down completely randomly.
Pair Corralation between Thai Steel and Asia Sermkij
Assuming the 90 days trading horizon Thai Steel Cable is expected to generate 0.4 times more return on investment than Asia Sermkij. However, Thai Steel Cable is 2.5 times less risky than Asia Sermkij. It trades about 0.18 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about -0.15 per unit of risk. If you would invest 1,430 in Thai Steel Cable on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Thai Steel Cable or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Steel Cable vs. Asia Sermkij Leasing
Performance |
| Timeline |
| Thai Steel Cable |
| Asia Sermkij Leasing |
Thai Steel and Asia Sermkij Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Steel and Asia Sermkij
The main advantage of trading using opposite Thai Steel and Asia Sermkij positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Steel position performs unexpectedly, Asia Sermkij 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 Asia Sermkij will offset losses from the drop in Asia Sermkij's long position.| Thai Steel vs. United Paper Public | Thai Steel vs. TMT Steel Public | Thai Steel vs. Thai Stanley Electric | Thai Steel vs. Inoue Rubber Public |
| Asia Sermkij vs. Thai Steel Cable | Asia Sermkij vs. Tropical Canning Public | Asia Sermkij vs. RB Food Supply | Asia Sermkij vs. Eureka Design 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |