Correlation Between Thai Vegetable and Thaitheparos Public
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Thaitheparos 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 Vegetable and Thaitheparos Public 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 Thaitheparos Public, you can compare the effects of market volatilities on Thai Vegetable and Thaitheparos 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 Vegetable with a short position of Thaitheparos Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Thaitheparos Public.
Diversification Opportunities for Thai Vegetable and Thaitheparos Public
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Thaitheparos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Thaitheparos Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaitheparos Public 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 Thaitheparos Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaitheparos Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Thaitheparos Public go up and down completely randomly.
Pair Corralation between Thai Vegetable and Thaitheparos Public
Assuming the 90 days trading horizon Thai Vegetable is expected to generate 134.6 times less return on investment than Thaitheparos Public. But when comparing it to its historical volatility, Thai Vegetable Oil is 51.54 times less risky than Thaitheparos Public. It trades about 0.02 of its potential returns per unit of risk. Thaitheparos Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,785 in Thaitheparos Public on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Thaitheparos Public or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Thai Vegetable Oil vs. Thaitheparos Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| Thaitheparos Public |
Thai Vegetable and Thaitheparos Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Thaitheparos Public
The main advantage of trading using opposite Thai Vegetable and Thaitheparos Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Thaitheparos 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 Thaitheparos Public will offset losses from the drop in Thaitheparos Public's long position.| Thai Vegetable vs. Charoen Pokphand Foods | Thai Vegetable vs. Thai Union Group | Thai Vegetable vs. TISCO Financial Group | Thai Vegetable vs. Thanachart Capital Public |
| Thaitheparos Public vs. Thai Union Group | Thaitheparos Public vs. Thai Vegetable Oil | Thaitheparos Public vs. Ichitan Group Public | Thaitheparos Public vs. Haad Thip 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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