Correlation Between Sun Vending and Thitikorn Public

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Can any of the company-specific risk be diversified away by investing in both Sun Vending and Thitikorn 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 Sun Vending and Thitikorn Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Vending Technology and Thitikorn Public, you can compare the effects of market volatilities on Sun Vending and Thitikorn 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 Sun Vending with a short position of Thitikorn Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Thitikorn Public.

Diversification Opportunities for Sun Vending and Thitikorn Public

0.87
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Sun and Thitikorn is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn Public and Sun Vending 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 Sun Vending Technology are associated (or correlated) with Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of Sun Vending i.e., Sun Vending and Thitikorn Public go up and down completely randomly.

Pair Corralation between Sun Vending and Thitikorn Public

Assuming the 90 days trading horizon Sun Vending Technology is expected to under-perform the Thitikorn Public. In addition to that, Sun Vending is 1.56 times more volatile than Thitikorn Public. It trades about -0.11 of its total potential returns per unit of risk. Thitikorn Public is currently generating about -0.14 per unit of volatility. If you would invest  472.00  in Thitikorn Public on October 11, 2024 and sell it today you would lose (28.00) from holding Thitikorn Public or give up 5.93% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Sun Vending Technology  vs.  Thitikorn Public

 Performance 
       Timeline  
Sun Vending Technology 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Sun Vending Technology 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 basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Thitikorn Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Thitikorn 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 persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Sun Vending and Thitikorn Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sun Vending and Thitikorn Public

The main advantage of trading using opposite Sun Vending and Thitikorn Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Thitikorn 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 Thitikorn Public will offset losses from the drop in Thitikorn Public's long position.
The idea behind Sun Vending Technology and Thitikorn 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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