Correlation Between Sun Vending and Thitikorn Public
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Vending Technology vs. Thitikorn Public
Performance |
Timeline |
Sun Vending Technology |
Thitikorn Public |
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.Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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