Correlation Between Thai Vegetable and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and SP Syndicate 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 SP Syndicate 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 SP Syndicate Public, you can compare the effects of market volatilities on Thai Vegetable and SP Syndicate 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 SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and SP Syndicate.
Diversification Opportunities for Thai Vegetable and SP Syndicate
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and SNP is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate 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 SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and SP Syndicate go up and down completely randomly.
Pair Corralation between Thai Vegetable and SP Syndicate
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to generate 1.28 times more return on investment than SP Syndicate. However, Thai Vegetable is 1.28 times more volatile than SP Syndicate Public. It trades about 0.03 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.22 per unit of risk. If you would invest 2,190 in Thai Vegetable Oil on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Thai Vegetable Oil or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Vegetable Oil vs. SP Syndicate Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| SP Syndicate Public |
Thai Vegetable and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and SP Syndicate
The main advantage of trading using opposite Thai Vegetable and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate'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 |
| SP Syndicate vs. TRC Construction Public | SP Syndicate vs. Bangkok Expressway and | SP Syndicate vs. Lohakit Metal Public | SP Syndicate vs. Gunkul Engineering 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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