Correlation Between Thoresen Thai and Thai Vegetable
Can any of the company-specific risk be diversified away by investing in both Thoresen Thai and Thai Vegetable 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 Thai Vegetable 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 Thai Vegetable Oil, you can compare the effects of market volatilities on Thoresen Thai and Thai Vegetable 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 Thai Vegetable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thoresen Thai and Thai Vegetable.
Diversification Opportunities for Thoresen Thai and Thai Vegetable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thoresen and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies and Thai Vegetable Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Vegetable Oil 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 Thai Vegetable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Vegetable Oil has no effect on the direction of Thoresen Thai i.e., Thoresen Thai and Thai Vegetable go up and down completely randomly.
Pair Corralation between Thoresen Thai and Thai Vegetable
Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to under-perform the Thai Vegetable. In addition to that, Thoresen Thai is 2.01 times more volatile than Thai Vegetable Oil. It trades about -0.02 of its total potential returns per unit of risk. Thai Vegetable Oil is currently generating about -0.01 per unit of volatility. If you would invest 2,542 in Thai Vegetable Oil on August 24, 2024 and sell it today you would lose (182.00) from holding Thai Vegetable Oil or give up 7.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Thoresen Thai Agencies vs. Thai Vegetable Oil
Performance |
| Timeline |
| Thoresen Thai Agencies |
| Thai Vegetable Oil |
Thoresen Thai and Thai Vegetable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thoresen Thai and Thai Vegetable
The main advantage of trading using opposite Thoresen Thai and Thai Vegetable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thoresen Thai position performs unexpectedly, Thai Vegetable 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 Thai Vegetable will offset losses from the drop in Thai Vegetable'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 |
| Thai Vegetable vs. Charoen Pokphand Foods | Thai Vegetable vs. Thai Union Group | Thai Vegetable vs. TISCO Financial Group | Thai Vegetable vs. Thanachart Capital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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