Correlation Between Thaitheparos Public and Surapon Foods

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

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

Diversification Opportunities for Thaitheparos Public and Surapon Foods

0.0

Correlation Coefficient

Thaitheparos Public  Surapon Foods

Pay attention - limited upside

The 3 months correlation between Thaitheparos and Surapon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thaitheparos Public and Surapon Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surapon Foods 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 Surapon Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surapon Foods Public has no effect on the direction of Thaitheparos Public i.e., Thaitheparos Public and Surapon Foods go up and down completely randomly.

Pair Corralation between Thaitheparos Public and Surapon Foods

Assuming the 90 days trading horizon Thaitheparos Public is expected to generate 0.34 times more return on investment than Surapon Foods. However, Thaitheparos Public is 2.9 times less risky than Surapon Foods. It trades about 0.02 of its potential returns per unit of risk. Surapon Foods Public is currently generating about -0.1 per unit of risk. If you would invest  3,800  in Thaitheparos Public on December 26, 2024 and sell it today you would earn a total of  25.00  from holding Thaitheparos Public or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Thaitheparos Public  vs.  Surapon Foods Public

Thaitheparos Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thaitheparos Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Thaitheparos Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Surapon Foods Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Surapon Foods Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators 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 Thaitheparos Public and Surapon Foods

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

The idea behind Thaitheparos Public and Surapon Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.