Correlation Between Univanich Palm and TCM Public
Can any of the company-specific risk be diversified away by investing in both Univanich Palm and TCM 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 Univanich Palm and TCM Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univanich Palm Oil and TCM Public, you can compare the effects of market volatilities on Univanich Palm and TCM 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 Univanich Palm with a short position of TCM Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univanich Palm and TCM Public.
Diversification Opportunities for Univanich Palm and TCM Public
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Univanich and TCM is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Univanich Palm Oil and TCM Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCM Public and Univanich Palm 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 Univanich Palm Oil are associated (or correlated) with TCM Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCM Public has no effect on the direction of Univanich Palm i.e., Univanich Palm and TCM Public go up and down completely randomly.
Pair Corralation between Univanich Palm and TCM Public
Assuming the 90 days trading horizon Univanich Palm is expected to generate 20.31 times less return on investment than TCM Public. But when comparing it to its historical volatility, Univanich Palm Oil is 39.96 times less risky than TCM Public. It trades about 0.07 of its potential returns per unit of risk. TCM Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 162.00 in TCM Public on September 3, 2024 and sell it today you would lose (91.00) from holding TCM Public or give up 56.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Univanich Palm Oil vs. TCM Public
Performance |
| Timeline |
| Univanich Palm Oil |
| TCM Public |
Univanich Palm and TCM Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univanich Palm and TCM Public
The main advantage of trading using opposite Univanich Palm and TCM Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univanich Palm position performs unexpectedly, TCM 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 TCM Public will offset losses from the drop in TCM Public's long position.| Univanich Palm vs. Chumporn Palm Oil | Univanich Palm vs. United Palm Oil | Univanich Palm vs. Thai Vegetable Oil | Univanich Palm vs. Sri Trang Agro Industry |
| TCM Public vs. STPI Public | TCM Public vs. Thai Vegetable Oil | TCM Public vs. Tycoons Worldwide Group | TCM Public vs. Ratchthani Leasing 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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