Correlation Between Amata Public and Thai Union

Can any of the company-specific risk be diversified away by investing in both Amata Public and Thai Union 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 Amata Public and Thai Union into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amata Public and Thai Union Group, you can compare the effects of market volatilities on Amata Public and Thai Union 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 Amata Public with a short position of Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amata Public and Thai Union.

Diversification Opportunities for Amata Public and Thai Union

0.98

Correlation Coefficient

Amata Public  Thai Union

Almost no diversification

The 3 months correlation between Amata and Thai is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amata Public and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group and Amata 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 Amata Public are associated (or correlated) with Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Amata Public i.e., Amata Public and Thai Union go up and down completely randomly.

Pair Corralation between Amata Public and Thai Union

Assuming the 90 days trading horizon Amata Public is expected to generate 0.35 times more return on investment than Thai Union. However, Amata Public is 2.86 times less risky than Thai Union. It trades about -0.13 of its potential returns per unit of risk. Thai Union Group is currently generating about -0.12 per unit of risk. If you would invest  2,270  in Amata Public on December 30, 2024 and sell it today you would lose (140.00) from holding Amata Public or give up 6.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Amata Public  vs.  Thai Union Group

Amata Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amata Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Amata Public is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Thai Union Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thai Union Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Amata Public and Thai Union

The main advantage of trading using opposite Amata Public and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amata Public position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union's long position.

The idea behind Amata Public and Thai Union Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.