Correlation Between TAC Consumer and Thanapiriya Public

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

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

Diversification Opportunities for TAC Consumer and Thanapiriya Public

0.39

Correlation Coefficient

TAC Consumer  Thanapiriya Public

Weak diversification

The 3 months correlation between TAC and Thanapiriya is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding TAC Consumer Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and TAC Consumer 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 TAC Consumer Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of TAC Consumer i.e., TAC Consumer and Thanapiriya Public go up and down completely randomly.

Pair Corralation between TAC Consumer and Thanapiriya Public

Assuming the 90 days trading horizon TAC Consumer Public is expected to generate 0.61 times more return on investment than Thanapiriya Public. However, TAC Consumer Public is 1.63 times less risky than Thanapiriya Public. It trades about -0.07 of its potential returns per unit of risk. Thanapiriya Public is currently generating about -0.06 per unit of risk. If you would invest  494.00  in TAC Consumer Public on September 14, 2024 and sell it today you would lose (26.00) from holding TAC Consumer Public or give up 5.26% of portfolio value over 90 days.

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

TAC Consumer Public  vs.  Thanapiriya Public

TAC Consumer Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Thanapiriya Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thanapiriya Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with TAC Consumer and Thanapiriya Public

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

The idea behind TAC Consumer Public and Thanapiriya 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.