Correlation Between Sahamitr Pressure and Thantawan Industry

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

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

Diversification Opportunities for Sahamitr Pressure and Thantawan Industry

0.22

Correlation Coefficient

Sahamitr Pressure  Thantawan Industry

Modest diversification

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

Pair Corralation between Sahamitr Pressure and Thantawan Industry

Assuming the 90 days trading horizon Sahamitr Pressure Container is expected to under-perform the Thantawan Industry. But the stock apears to be less risky and, when comparing its historical volatility, Sahamitr Pressure Container is 2.27 times less risky than Thantawan Industry. The stock trades about -0.2 of its potential returns per unit of risk. The Thantawan Industry Public is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,625  in Thantawan Industry Public on December 2, 2024 and sell it today you would earn a total of  150.00  from holding Thantawan Industry Public or generate 5.71% return on investment over 90 days.

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

Sahamitr Pressure Container  vs.  Thantawan Industry Public

Sahamitr Pressure

Risk-Adjusted Performance

Very Weak

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

Thantawan Industry Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thantawan Industry Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Thantawan Industry 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 Sahamitr Pressure and Thantawan Industry

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

The idea behind Sahamitr Pressure Container and Thantawan Industry 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.