Correlation Between Thai Vegetable and Exotic Food
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Exotic Food 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 Exotic Food 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 Exotic Food Public, you can compare the effects of market volatilities on Thai Vegetable and Exotic Food 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 Exotic Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Exotic Food.
Diversification Opportunities for Thai Vegetable and Exotic Food
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Exotic is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Exotic Food Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exotic Food 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 Exotic Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exotic Food Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Exotic Food go up and down completely randomly.
Pair Corralation between Thai Vegetable and Exotic Food
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to generate 0.28 times more return on investment than Exotic Food. However, Thai Vegetable Oil is 3.54 times less risky than Exotic Food. It trades about -0.46 of its potential returns per unit of risk. Exotic Food Public is currently generating about -0.29 per unit of risk. If you would invest 2,290 in Thai Vegetable Oil on November 3, 2024 and sell it today you would lose (190.00) from holding Thai Vegetable Oil or give up 8.3% 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. Exotic Food Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| Exotic Food Public |
Thai Vegetable and Exotic Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Exotic Food
The main advantage of trading using opposite Thai Vegetable and Exotic Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Exotic Food 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 Exotic Food will offset losses from the drop in Exotic Food'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 |
| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |