Correlation Between Eureka Design and Thai Steel
Can any of the company-specific risk be diversified away by investing in both Eureka Design and Thai Steel 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 Eureka Design and Thai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eureka Design Public and Thai Steel Cable, you can compare the effects of market volatilities on Eureka Design and Thai Steel 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 Eureka Design with a short position of Thai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eureka Design and Thai Steel.
Diversification Opportunities for Eureka Design and Thai Steel
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eureka and Thai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eureka Design Public and Thai Steel Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Steel Cable and Eureka Design 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 Eureka Design Public are associated (or correlated) with Thai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Steel Cable has no effect on the direction of Eureka Design i.e., Eureka Design and Thai Steel go up and down completely randomly.
Pair Corralation between Eureka Design and Thai Steel
Assuming the 90 days trading horizon Eureka Design Public is expected to under-perform the Thai Steel. In addition to that, Eureka Design is 2.95 times more volatile than Thai Steel Cable. It trades about 0.0 of its total potential returns per unit of risk. Thai Steel Cable is currently generating about 0.01 per unit of volatility. If you would invest 1,191 in Thai Steel Cable on January 13, 2025 and sell it today you would earn a total of 49.00 from holding Thai Steel Cable or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eureka Design Public vs. Thai Steel Cable
Performance |
| Timeline |
| Eureka Design Public |
| Thai Steel Cable |
Eureka Design and Thai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eureka Design and Thai Steel
The main advantage of trading using opposite Eureka Design and Thai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eureka Design position performs unexpectedly, Thai Steel 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 Thai Steel will offset losses from the drop in Thai Steel's long position.| Eureka Design vs. Digital Telecommunications Infrastructure | Eureka Design vs. Electricity Generating Public | Eureka Design vs. BTS Group Holdings | Eureka Design vs. IVF |
| Thai Steel vs. Newcity Public | Thai Steel vs. Pato Chemical Industry | Thai Steel vs. Ocean Glass Public | Thai Steel vs. Nawarat Patanakarn 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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