Correlation Between Saha Pathanapibul and TRC Construction

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

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

Diversification Opportunities for Saha Pathanapibul and TRC Construction

-0.2

Correlation Coefficient

Saha Pathanapibul  TRC Construction

Good diversification

The 3 months correlation between Saha and TRC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathanapibul Public and TRC Construction Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRC Construction Public and Saha Pathanapibul 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 Saha Pathanapibul Public are associated (or correlated) with TRC Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRC Construction Public has no effect on the direction of Saha Pathanapibul i.e., Saha Pathanapibul and TRC Construction go up and down completely randomly.

Pair Corralation between Saha Pathanapibul and TRC Construction

Assuming the 90 days trading horizon Saha Pathanapibul Public is expected to generate 0.1 times more return on investment than TRC Construction. However, Saha Pathanapibul Public is 10.33 times less risky than TRC Construction. It trades about 0.0 of its potential returns per unit of risk. TRC Construction Public is currently generating about -0.09 per unit of risk. If you would invest  5,875  in Saha Pathanapibul Public on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Saha Pathanapibul Public or generate 0.0% return on investment over 90 days.

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

Saha Pathanapibul Public  vs.  TRC Construction Public

Saha Pathanapibul Public

Risk-Adjusted Performance

Very Weak

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

TRC Construction Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days TRC Construction 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 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 Saha Pathanapibul and TRC Construction

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

The idea behind Saha Pathanapibul Public and TRC Construction 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.