Correlation Between Thai Textile and Trinity Watthana
Can any of the company-specific risk be diversified away by investing in both Thai Textile and Trinity Watthana 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 Thai Textile and Trinity Watthana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Textile Industry and Trinity Watthana Public, you can compare the effects of market volatilities on Thai Textile and Trinity Watthana 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 Thai Textile with a short position of Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Textile and Trinity Watthana.
Diversification Opportunities for Thai Textile and Trinity Watthana
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thai and Trinity is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thai Textile Industry and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana Public and Thai Textile 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 Thai Textile Industry are associated (or correlated) with Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of Thai Textile i.e., Thai Textile and Trinity Watthana go up and down completely randomly.
Pair Corralation between Thai Textile and Trinity Watthana
Assuming the 90 days trading horizon Thai Textile Industry is expected to generate 1.0 times more return on investment than Trinity Watthana. However, Thai Textile is 1.0 times more volatile than Trinity Watthana Public. It trades about 0.08 of its potential returns per unit of risk. Trinity Watthana Public is currently generating about 0.08 per unit of risk. If you would invest 2,550 in Thai Textile Industry on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Thai Textile Industry or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Textile Industry vs. Trinity Watthana Public
Performance |
| Timeline |
| Thai Textile Industry |
| Trinity Watthana Public |
Thai Textile and Trinity Watthana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Textile and Trinity Watthana
The main advantage of trading using opposite Thai Textile and Trinity Watthana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Textile position performs unexpectedly, Trinity Watthana 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 Trinity Watthana will offset losses from the drop in Trinity Watthana's long position.| Thai Textile vs. Central Pattana Public | Thai Textile vs. CP ALL Public | Thai Textile vs. Bangkok Dusit Medical | Thai Textile vs. Airports of Thailand |
| Trinity Watthana vs. Thai Steel Cable | Trinity Watthana vs. Tropical Canning Public | Trinity Watthana vs. RB Food Supply | Trinity Watthana vs. Eureka Design 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |