Correlation Between Thai Vegetable and Thantawan Industry
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Thantawan Industry 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 Thantawan Industry 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 Thantawan Industry Public, you can compare the effects of market volatilities on Thai Vegetable and Thantawan Industry 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 Thantawan Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Thantawan Industry.
Diversification Opportunities for Thai Vegetable and Thantawan Industry
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Thantawan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Thantawan Industry Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thantawan Industry 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 Thantawan Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thantawan Industry Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Thantawan Industry go up and down completely randomly.
Pair Corralation between Thai Vegetable and Thantawan Industry
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to under-perform the Thantawan Industry. But the stock apears to be less risky and, when comparing its historical volatility, Thai Vegetable Oil is 1.18 times less risky than Thantawan Industry. The stock trades about -0.54 of its potential returns per unit of risk. The Thantawan Industry Public is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Thantawan Industry Public on September 2, 2024 and sell it today you would lose (25.00) from holding Thantawan Industry Public or give up 0.86% 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. Thantawan Industry Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| Thantawan Industry Public |
Thai Vegetable and Thantawan Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Thantawan Industry
The main advantage of trading using opposite Thai Vegetable and Thantawan Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Thantawan Industry 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 Thantawan Industry will offset losses from the drop in Thantawan Industry'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 |
| Thantawan Industry vs. AAPICO Hitech Public | Thantawan Industry vs. AP Public | Thantawan Industry vs. Aikchol Hospital Public | Thantawan Industry vs. Bank of Ayudhya |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |