Correlation Between Thai Union and RB Food
Can any of the company-specific risk be diversified away by investing in both Thai Union and RB Food 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 Union and RB Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Union Group and RB Food Supply, you can compare the effects of market volatilities on Thai Union and RB Food 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 Union with a short position of RB Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Union and RB Food.
Diversification Opportunities for Thai Union and RB Food
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and RBF is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thai Union Group and RB Food Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Food Supply and Thai Union 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 Union Group are associated (or correlated) with RB Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Food Supply has no effect on the direction of Thai Union i.e., Thai Union and RB Food go up and down completely randomly.
Pair Corralation between Thai Union and RB Food
Assuming the 90 days trading horizon Thai Union is expected to generate 6.6 times less return on investment than RB Food. But when comparing it to its historical volatility, Thai Union Group is 3.57 times less risky than RB Food. It trades about 0.19 of its potential returns per unit of risk. RB Food Supply is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 540.00 in RB Food Supply on September 12, 2024 and sell it today you would earn a total of 145.00 from holding RB Food Supply or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Union Group vs. RB Food Supply
Performance |
| Timeline |
| Thai Union Group |
| RB Food Supply |
Thai Union and RB Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Union and RB Food
The main advantage of trading using opposite Thai Union and RB Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Union position performs unexpectedly, RB Food 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 RB Food will offset losses from the drop in RB Food's long position.| Thai Union vs. Krung Thai Bank | Thai Union vs. Thai Oil Public | Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public |
| RB Food vs. Thai Union Group | RB Food vs. Thai Union Group | RB Food vs. Thai President Foods | RB Food vs. Thai Vegetable Oil |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |