Correlation Between Thantawan Industry and Thai Packaging
Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Thai Packaging 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 Thantawan Industry and Thai Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thantawan Industry Public and Thai Packaging Printing, you can compare the effects of market volatilities on Thantawan Industry and Thai Packaging 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 Thantawan Industry with a short position of Thai Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Thai Packaging.
Diversification Opportunities for Thantawan Industry and Thai Packaging
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thantawan and Thai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Thai Packaging Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Packaging Printing and Thantawan Industry 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 Thantawan Industry Public are associated (or correlated) with Thai Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Packaging Printing has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Thai Packaging go up and down completely randomly.
Pair Corralation between Thantawan Industry and Thai Packaging
Assuming the 90 days trading horizon Thantawan Industry Public is expected to generate 1.01 times more return on investment than Thai Packaging. However, Thantawan Industry is 1.01 times more volatile than Thai Packaging Printing. It trades about -0.01 of its potential returns per unit of risk. Thai Packaging Printing is currently generating about -0.07 per unit of risk. If you would invest 2,800 in Thantawan Industry Public on December 2, 2024 and sell it today you would lose (25.00) from holding Thantawan Industry Public or give up 0.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Thantawan Industry Public vs. Thai Packaging Printing
Performance |
Timeline |
Thantawan Industry Public |
Thai Packaging Printing |
Thantawan Industry and Thai Packaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thantawan Industry and Thai Packaging
The main advantage of trading using opposite Thantawan Industry and Thai Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thantawan Industry position performs unexpectedly, Thai Packaging 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 Thai Packaging will offset losses from the drop in Thai Packaging's long position.Thantawan Industry vs. Thai Metal Drum | Thantawan Industry vs. Haad Thip Public | Thantawan Industry vs. Sahamitr Pressure Container | Thantawan Industry vs. Ratchthani Leasing Public |
Thai Packaging vs. Thai Nam Plastic | Thai Packaging vs. Thantawan Industry Public | Thai Packaging vs. Thai Poly Acrylic | Thai Packaging vs. Thai Rung Union |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |