Correlation Between Thai Steel and Sanko Diecasting
Can any of the company-specific risk be diversified away by investing in both Thai Steel 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 Steel 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 Steel Cable and Sanko Diecasting Public, you can compare the effects of market volatilities on Thai Steel 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 Steel with a short position of Sanko Diecasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Steel and Sanko Diecasting.
Diversification Opportunities for Thai Steel and Sanko Diecasting
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and Sanko is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Thai Steel Cable 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 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 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 Steel i.e., Thai Steel and Sanko Diecasting go up and down completely randomly.
Pair Corralation between Thai Steel and Sanko Diecasting
Assuming the 90 days trading horizon Thai Steel is expected to generate 66.84 times less return on investment than Sanko Diecasting. But when comparing it to its historical volatility, Thai Steel Cable is 39.22 times less risky than Sanko Diecasting. It trades about 0.02 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Steel Cable vs. Sanko Diecasting Public
Performance |
| Timeline |
| Thai Steel Cable |
| Sanko Diecasting Public |
Thai Steel and Sanko Diecasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Steel and Sanko Diecasting
The main advantage of trading using opposite Thai Steel and Sanko Diecasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Steel 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 Steel vs. United Paper Public | Thai Steel vs. Thai Stanley Electric | Thai Steel vs. Inoue Rubber Public | Thai Steel vs. MCS Steel Public |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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 | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |