Correlation Between Thai Union and PRG Public
Can any of the company-specific risk be diversified away by investing in both Thai Union and PRG Public 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 PRG Public 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 PRG Public, you can compare the effects of market volatilities on Thai Union and PRG Public 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 PRG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Union and PRG Public.
Diversification Opportunities for Thai Union and PRG Public
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and PRG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thai Union Group and PRG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRG 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 PRG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRG Public has no effect on the direction of Thai Union i.e., Thai Union and PRG Public go up and down completely randomly.
Pair Corralation between Thai Union and PRG Public
Assuming the 90 days horizon Thai Union is expected to generate 2.0 times less return on investment than PRG Public. But when comparing it to its historical volatility, Thai Union Group is 1.41 times less risky than PRG Public. It trades about 0.04 of its potential returns per unit of risk. PRG Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,091 in PRG Public on August 24, 2024 and sell it today you would lose (196.00) from holding PRG Public or give up 17.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Union Group vs. PRG Public
Performance |
| Timeline |
| Thai Union Group |
| PRG Public |
Thai Union and PRG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Union and PRG Public
The main advantage of trading using opposite Thai Union and PRG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Union position performs unexpectedly, PRG Public 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 PRG Public will offset losses from the drop in PRG Public's long position.| Thai Union vs. CP ALL Public | Thai Union vs. Carabao Group Public | Thai Union vs. Minor International Public | Thai Union vs. Central Pattana Public |
| PRG Public vs. CP ALL Public | PRG Public vs. Carabao Group Public | PRG Public vs. Thai Union Group | PRG Public vs. Minor International 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |