Correlation Between Thoresen Thai and STPI Public
Can any of the company-specific risk be diversified away by investing in both Thoresen Thai and STPI Public 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 STPI Public 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 STPI Public, you can compare the effects of market volatilities on Thoresen Thai and STPI Public 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 STPI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoresen Thai and STPI Public.
Diversification Opportunities for Thoresen Thai and STPI Public
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thoresen and STPI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies and STPI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STPI 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 STPI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STPI Public has no effect on the direction of Thoresen Thai i.e., Thoresen Thai and STPI Public go up and down completely randomly.
Pair Corralation between Thoresen Thai and STPI Public
Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to generate 1.54 times more return on investment than STPI Public. However, Thoresen Thai is 1.54 times more volatile than STPI Public. It trades about 0.13 of its potential returns per unit of risk. STPI Public is currently generating about -0.41 per unit of risk. If you would invest 550.00 in Thoresen Thai Agencies on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Thoresen Thai Agencies or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thoresen Thai Agencies vs. STPI Public
Performance |
| Timeline |
| Thoresen Thai Agencies |
| STPI Public |
Thoresen Thai and STPI Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoresen Thai and STPI Public
The main advantage of trading using opposite Thoresen Thai and STPI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoresen Thai position performs unexpectedly, STPI Public 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 STPI Public will offset losses from the drop in STPI Public'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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