Correlation Between VGI Public and Thai Solar
Can any of the company-specific risk be diversified away by investing in both VGI Public and Thai Solar 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 VGI Public and Thai Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGI Public and Thai Solar Energy, you can compare the effects of market volatilities on VGI Public and Thai Solar 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 VGI Public with a short position of Thai Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGI Public and Thai Solar.
Diversification Opportunities for VGI Public and Thai Solar
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VGI and Thai is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding VGI Public and Thai Solar Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Solar Energy and VGI Public 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 VGI Public are associated (or correlated) with Thai Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Solar Energy has no effect on the direction of VGI Public i.e., VGI Public and Thai Solar go up and down completely randomly.
Pair Corralation between VGI Public and Thai Solar
Assuming the 90 days trading horizon VGI Public is expected to generate 2.12 times more return on investment than Thai Solar. However, VGI Public is 2.12 times more volatile than Thai Solar Energy. It trades about -0.07 of its potential returns per unit of risk. Thai Solar Energy is currently generating about -0.5 per unit of risk. If you would invest 326.00 in VGI Public on October 20, 2024 and sell it today you would lose (24.00) from holding VGI Public or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VGI Public vs. Thai Solar Energy
Performance |
| Timeline |
| VGI Public |
| Thai Solar Energy |
VGI Public and Thai Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGI Public and Thai Solar
The main advantage of trading using opposite VGI Public and Thai Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGI Public position performs unexpectedly, Thai Solar 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 Solar will offset losses from the drop in Thai Solar's long position.| VGI Public vs. Siamgas and Petrochemicals | VGI Public vs. Namyong Terminal PCL | VGI Public vs. MCOT Public | VGI Public vs. The Erawan Group |
| Thai Solar vs. BCPG Public | Thai Solar vs. Diamond Building Products | Thai Solar vs. Earth Tech Environment | Thai Solar vs. TPI Polene Power |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance |