Correlation Between Thai Vegetable and UAC Global
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and UAC Global 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 UAC Global 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 UAC Global Public, you can compare the effects of market volatilities on Thai Vegetable and UAC Global 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 UAC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and UAC Global.
Diversification Opportunities for Thai Vegetable and UAC Global
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and UAC is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and UAC Global Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UAC Global 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 UAC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UAC Global Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and UAC Global go up and down completely randomly.
Pair Corralation between Thai Vegetable and UAC Global
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to under-perform the UAC Global. But the stock apears to be less risky and, when comparing its historical volatility, Thai Vegetable Oil is 2.2 times less risky than UAC Global. The stock trades about -0.22 of its potential returns per unit of risk. The UAC Global Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 315.00 in UAC Global Public on August 30, 2024 and sell it today you would lose (1.00) from holding UAC Global Public or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Vegetable Oil vs. UAC Global Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| UAC Global Public |
Thai Vegetable and UAC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and UAC Global
The main advantage of trading using opposite Thai Vegetable and UAC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, UAC Global 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 UAC Global will offset losses from the drop in UAC Global'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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