Correlation Between Thai Union and Ichitan Group
Can any of the company-specific risk be diversified away by investing in both Thai Union and Ichitan Group 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 Ichitan Group 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 Ichitan Group Public, you can compare the effects of market volatilities on Thai Union and Ichitan Group 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 Ichitan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Union and Ichitan Group.
Diversification Opportunities for Thai Union and Ichitan Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and Ichitan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Thai Union Group and Ichitan Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichitan Group Public 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 Ichitan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichitan Group Public has no effect on the direction of Thai Union i.e., Thai Union and Ichitan Group go up and down completely randomly.
Pair Corralation between Thai Union and Ichitan Group
Assuming the 90 days horizon Thai Union Group is expected to under-perform the Ichitan Group. But the stock apears to be less risky and, when comparing its historical volatility, Thai Union Group is 1.04 times less risky than Ichitan Group. The stock trades about -0.28 of its potential returns per unit of risk. The Ichitan Group Public is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,508 in Ichitan Group Public on September 1, 2024 and sell it today you would lose (28.00) from holding Ichitan Group Public or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Union Group vs. Ichitan Group Public
Performance |
| Timeline |
| Thai Union Group |
| Ichitan Group Public |
Thai Union and Ichitan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Union and Ichitan Group
The main advantage of trading using opposite Thai Union and Ichitan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Union position performs unexpectedly, Ichitan Group 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 Ichitan Group will offset losses from the drop in Ichitan Group's long position.| Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public | Thai Union vs. Minor International Public | Thai Union vs. Advanced Info Service |
| Ichitan Group vs. Carabao Group Public | Ichitan Group vs. Taokaenoi Food Marketing | Ichitan Group vs. Home Product Center | Ichitan Group vs. Thai Union Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |