Correlation Between Thaifoods Group and T S

Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and T S 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 Thaifoods Group and T S into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Thaifoods Group and T S

0.63

Correlation Coefficient

Thaifoods Group  T S

Poor diversification

The 3 months correlation between Thaifoods and TMILL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and T S Flour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T S Flour and Thaifoods Group 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 Thaifoods Group Public are associated (or correlated) with T S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T S Flour has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and T S go up and down completely randomly.

Pair Corralation between Thaifoods Group and T S

Assuming the 90 days trading horizon Thaifoods Group Public is expected to generate 1.42 times more return on investment than T S. However, Thaifoods Group is 1.42 times more volatile than T S Flour. It trades about 0.11 of its potential returns per unit of risk. T S Flour is currently generating about 0.08 per unit of risk. If you would invest  407.00  in Thaifoods Group Public on September 1, 2024 and sell it today you would lose (39.00) from holding Thaifoods Group Public or give up 9.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.2%
Values	Daily Returns

Thaifoods Group Public  vs.  T S Flour

Thaifoods Group Public

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thaifoods Group Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Thaifoods Group sustained solid returns over the last few months and may actually be approaching a breakup point.

T S Flour

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in T S Flour are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, T S sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thaifoods Group and T S

The main advantage of trading using opposite Thaifoods Group and T S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, T S 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 T S will offset losses from the drop in T S's long position.

The idea behind Thaifoods Group Public and T S Flour 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.