Correlation Between TTCL Public and Nawarat Patanakarn
Can any of the company-specific risk be diversified away by investing in both TTCL Public and Nawarat Patanakarn 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 TTCL Public and Nawarat Patanakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTCL Public and Nawarat Patanakarn Public, you can compare the effects of market volatilities on TTCL Public and Nawarat Patanakarn 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 TTCL Public with a short position of Nawarat Patanakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTCL Public and Nawarat Patanakarn.
Diversification Opportunities for TTCL Public and Nawarat Patanakarn
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TTCL and Nawarat is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding TTCL Public and Nawarat Patanakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawarat Patanakarn Public and TTCL Public 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 TTCL Public are associated (or correlated) with Nawarat Patanakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawarat Patanakarn Public has no effect on the direction of TTCL Public i.e., TTCL Public and Nawarat Patanakarn go up and down completely randomly.
Pair Corralation between TTCL Public and Nawarat Patanakarn
Assuming the 90 days trading horizon TTCL Public is expected to generate 1.0 times more return on investment than Nawarat Patanakarn. However, TTCL Public is 1.0 times less risky than Nawarat Patanakarn. It trades about 0.04 of its potential returns per unit of risk. Nawarat Patanakarn Public is currently generating about 0.04 per unit of risk. If you would invest 429.00 in TTCL Public on September 13, 2024 and sell it today you would lose (197.00) from holding TTCL Public or give up 45.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTCL Public vs. Nawarat Patanakarn Public
Performance |
| Timeline |
| TTCL Public |
| Nawarat Patanakarn Public |
TTCL Public and Nawarat Patanakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTCL Public and Nawarat Patanakarn
The main advantage of trading using opposite TTCL Public and Nawarat Patanakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTCL Public position performs unexpectedly, Nawarat Patanakarn 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 Nawarat Patanakarn will offset losses from the drop in Nawarat Patanakarn's long position.| TTCL Public vs. STPI Public | TTCL Public vs. WHA Public | TTCL Public vs. Italian Thai Development Public | TTCL Public vs. Jasmine International Public |
| Nawarat Patanakarn vs. Tata Steel Public | Nawarat Patanakarn vs. TTCL Public | Nawarat Patanakarn vs. Thaifoods Group Public | Nawarat Patanakarn vs. TMT Steel 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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