Correlation Between Thoresen Thai and Major Cineplex
Can any of the company-specific risk be diversified away by investing in both Thoresen Thai and Major Cineplex 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 Thoresen Thai and Major Cineplex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thoresen Thai Agencies and Major Cineplex Group, you can compare the effects of market volatilities on Thoresen Thai and Major Cineplex 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 Thoresen Thai with a short position of Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoresen Thai and Major Cineplex.
Diversification Opportunities for Thoresen Thai and Major Cineplex
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thoresen and Major is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies and Major Cineplex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Group and Thoresen Thai 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 Thoresen Thai Agencies are associated (or correlated) with Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Group has no effect on the direction of Thoresen Thai i.e., Thoresen Thai and Major Cineplex go up and down completely randomly.
Pair Corralation between Thoresen Thai and Major Cineplex
Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to under-perform the Major Cineplex. In addition to that, Thoresen Thai is 1.34 times more volatile than Major Cineplex Group. It trades about -0.01 of its total potential returns per unit of risk. Major Cineplex Group is currently generating about -0.01 per unit of volatility. If you would invest 1,696 in Major Cineplex Group on September 12, 2024 and sell it today you would lose (216.00) from holding Major Cineplex Group or give up 12.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thoresen Thai Agencies vs. Major Cineplex Group
Performance |
| Timeline |
| Thoresen Thai Agencies |
| Major Cineplex Group |
Thoresen Thai and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoresen Thai and Major Cineplex
The main advantage of trading using opposite Thoresen Thai and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoresen Thai position performs unexpectedly, Major Cineplex 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 Major Cineplex will offset losses from the drop in Major Cineplex's long position.| Thoresen Thai vs. Precious Shipping Public | Thoresen Thai vs. Regional Container Lines | Thoresen Thai vs. PTT Public | Thoresen Thai vs. The Siam Cement |
| Major Cineplex vs. Home Product Center | Major Cineplex vs. Land and Houses | Major Cineplex vs. Minor International Public | Major Cineplex vs. Advanced Info Service |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |