Correlation Between Thai Vegetable and Thitikorn Public
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Thitikorn 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 Thitikorn 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 Thitikorn Public, you can compare the effects of market volatilities on Thai Vegetable and Thitikorn 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 Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Thitikorn Public.
Diversification Opportunities for Thai Vegetable and Thitikorn Public
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thai and Thitikorn is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn 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 Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Thitikorn Public go up and down completely randomly.
Pair Corralation between Thai Vegetable and Thitikorn Public
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to under-perform the Thitikorn Public. But the stock apears to be less risky and, when comparing its historical volatility, Thai Vegetable Oil is 84.25 times less risky than Thitikorn Public. The stock trades about -0.02 of its potential returns per unit of risk. The Thitikorn Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Thitikorn Public on November 28, 2024 and sell it today you would lose (118.00) from holding Thitikorn Public or give up 23.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Vegetable Oil vs. Thitikorn Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| Thitikorn Public |
Thai Vegetable and Thitikorn Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Thitikorn Public
The main advantage of trading using opposite Thai Vegetable and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Thitikorn 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 Thitikorn Public will offset losses from the drop in Thitikorn 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 |
| Thitikorn Public vs. Sun Vending Technology | Thitikorn Public vs. TMBThanachart Bank Public | Thitikorn Public vs. Kasikornbank Public | Thitikorn Public vs. TISCO Financial Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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