Correlation Between Thaitheparos Public and Sermsuk Public

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

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

Diversification Opportunities for Thaitheparos Public and Sermsuk Public

0.22

Correlation Coefficient

Thaitheparos Public  Sermsuk Public

Modest diversification

The 3 months correlation between Thaitheparos and Sermsuk is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Thaitheparos Public and Sermsuk Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sermsuk Public and Thaitheparos 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 Thaitheparos Public are associated (or correlated) with Sermsuk Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sermsuk Public has no effect on the direction of Thaitheparos Public i.e., Thaitheparos Public and Sermsuk Public go up and down completely randomly.

Pair Corralation between Thaitheparos Public and Sermsuk Public

Assuming the 90 days trading horizon Thaitheparos Public is expected to under-perform the Sermsuk Public. But the stock apears to be less risky and, when comparing its historical volatility, Thaitheparos Public is 6.29 times less risky than Sermsuk Public. The stock trades about -0.22 of its potential returns per unit of risk. The Sermsuk Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6,175  in Sermsuk Public on September 14, 2024 and sell it today you would lose (200.00) from holding Sermsuk Public or give up 3.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Thaitheparos Public  vs.  Sermsuk Public

Thaitheparos Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thaitheparos Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Sermsuk Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sermsuk Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Sermsuk Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Thaitheparos Public and Sermsuk Public

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

The idea behind Thaitheparos Public and Sermsuk Public 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.