Correlation Between Thonburi Healthcare and SRI TRANG

Can any of the company-specific risk be diversified away by investing in both Thonburi Healthcare and SRI TRANG 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 Thonburi Healthcare and SRI TRANG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thonburi Healthcare Grp and SRI TRANG GLOVES, you can compare the effects of market volatilities on Thonburi Healthcare and SRI TRANG 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 Thonburi Healthcare with a short position of SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Healthcare and SRI TRANG.

Diversification Opportunities for Thonburi Healthcare and SRI TRANG

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Correlation Coefficient

Thonburi Healthcare  SRI TRANG

Pay attention - limited upside

The 3 months correlation between Thonburi and SRI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Healthcare Grp and SRI TRANG GLOVES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG GLOVES and Thonburi Healthcare 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 Thonburi Healthcare Grp are associated (or correlated) with SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG GLOVES has no effect on the direction of Thonburi Healthcare i.e., Thonburi Healthcare and SRI TRANG go up and down completely randomly.

Pair Corralation between Thonburi Healthcare and SRI TRANG

If you would invest (100.00) in SRI TRANG GLOVES on October 27, 2024 and sell it today you would earn a total of  100.00  from holding SRI TRANG GLOVES or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Thonburi Healthcare Grp  vs.  SRI TRANG GLOVES

Thonburi Healthcare Grp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Thonburi Healthcare Grp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental 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.

SRI TRANG GLOVES

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days SRI TRANG GLOVES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, SRI TRANG is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thonburi Healthcare and SRI TRANG

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

The idea behind Thonburi Healthcare Grp and SRI TRANG GLOVES 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.