Correlation Between Thoresen Thai and SiS Distribution
Can any of the company-specific risk be diversified away by investing in both Thoresen Thai and SiS Distribution 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 SiS Distribution 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 SiS Distribution Public, you can compare the effects of market volatilities on Thoresen Thai and SiS Distribution 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 SiS Distribution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoresen Thai and SiS Distribution.
Diversification Opportunities for Thoresen Thai and SiS Distribution
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thoresen and SiS is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies and SiS Distribution Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiS Distribution Public 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 SiS Distribution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiS Distribution Public has no effect on the direction of Thoresen Thai i.e., Thoresen Thai and SiS Distribution go up and down completely randomly.
Pair Corralation between Thoresen Thai and SiS Distribution
Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to under-perform the SiS Distribution. But the stock apears to be less risky and, when comparing its historical volatility, Thoresen Thai Agencies is 18.84 times less risky than SiS Distribution. The stock trades about -0.03 of its potential returns per unit of risk. The SiS Distribution Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,349 in SiS Distribution Public on November 5, 2024 and sell it today you would earn a total of 251.00 from holding SiS Distribution Public or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Thoresen Thai Agencies vs. SiS Distribution Public
Performance |
| Timeline |
| Thoresen Thai Agencies |
| SiS Distribution Public |
Thoresen Thai and SiS Distribution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoresen Thai and SiS Distribution
The main advantage of trading using opposite Thoresen Thai and SiS Distribution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoresen Thai position performs unexpectedly, SiS Distribution 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 SiS Distribution will offset losses from the drop in SiS Distribution'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 |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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