Correlation Between Thai Vegetable and Winner Group
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Winner 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 Vegetable and Winner Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Vegetable Oil and Winner Group Enterprise, you can compare the effects of market volatilities on Thai Vegetable and Winner 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 Vegetable with a short position of Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Winner Group.
Diversification Opportunities for Thai Vegetable and Winner Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Winner is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise and Thai Vegetable 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 Vegetable Oil are associated (or correlated) with Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Winner Group go up and down completely randomly.
Pair Corralation between Thai Vegetable and Winner Group
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to generate 1.41 times more return on investment than Winner Group. However, Thai Vegetable is 1.41 times more volatile than Winner Group Enterprise. It trades about 0.11 of its potential returns per unit of risk. Winner Group Enterprise is currently generating about 0.08 per unit of risk. If you would invest 2,535 in Thai Vegetable Oil on August 29, 2024 and sell it today you would lose (205.00) from holding Thai Vegetable Oil or give up 8.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Vegetable Oil vs. Winner Group Enterprise
Performance |
| Timeline |
| Thai Vegetable Oil |
| Winner Group Enterprise |
Thai Vegetable and Winner Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Winner Group
The main advantage of trading using opposite Thai Vegetable and Winner Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Winner 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 Winner Group will offset losses from the drop in Winner Group's long position.| Thai Vegetable vs. Thai Union Group | Thai Vegetable vs. Charoen Pokphand Foods | Thai Vegetable vs. CP ALL Public | Thai Vegetable vs. Intouch Holdings Public |
| Winner Group vs. T S Flour | Winner Group vs. Vintcom Technology PCL | Winner Group vs. Thanapiriya Public | Winner Group vs. Ubis 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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