Correlation Between Thai Wacoal and New Plus
Can any of the company-specific risk be diversified away by investing in both Thai Wacoal and New Plus 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 Wacoal and New Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Wacoal Public and New Plus Knitting, you can compare the effects of market volatilities on Thai Wacoal and New Plus 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 Wacoal with a short position of New Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Wacoal and New Plus.
Diversification Opportunities for Thai Wacoal and New Plus
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and New is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thai Wacoal Public and New Plus Knitting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Plus Knitting and Thai Wacoal 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 Wacoal Public are associated (or correlated) with New Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Plus Knitting has no effect on the direction of Thai Wacoal i.e., Thai Wacoal and New Plus go up and down completely randomly.
Pair Corralation between Thai Wacoal and New Plus
Assuming the 90 days trading horizon Thai Wacoal is expected to generate 1.04 times less return on investment than New Plus. But when comparing it to its historical volatility, Thai Wacoal Public is 1.0 times less risky than New Plus. It trades about 0.04 of its potential returns per unit of risk. New Plus Knitting is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,560 in New Plus Knitting on September 13, 2024 and sell it today you would lose (360.00) from holding New Plus Knitting or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Wacoal Public vs. New Plus Knitting
Performance |
| Timeline |
| Thai Wacoal Public |
| New Plus Knitting |
Thai Wacoal and New Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Wacoal and New Plus
The main advantage of trading using opposite Thai Wacoal and New Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Wacoal position performs unexpectedly, New Plus 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 New Plus will offset losses from the drop in New Plus' long position.| Thai Wacoal vs. Union Pioneer Public | Thai Wacoal vs. Thanulux Public | Thai Wacoal vs. Union Plastic Public | Thai Wacoal vs. Thai Rayon Public |
| New Plus vs. Pan Asia Footwear | New Plus vs. NEP Realty and | New Plus vs. Ocean Glass Public | New Plus vs. Metro Systems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |