Correlation Between Thantawan Industry and Univentures Public

Can any of the company-specific risk be diversified away by investing in both Thantawan Industry and Univentures 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 Thantawan Industry and Univentures Public 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 Univentures Public, you can compare the effects of market volatilities on Thantawan Industry and Univentures 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 Thantawan Industry with a short position of Univentures Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thantawan Industry and Univentures Public.

Diversification Opportunities for Thantawan Industry and Univentures Public

0.36

Correlation Coefficient

Thantawan Industry  Univentures Public

Weak diversification

The 3 months correlation between Thantawan and Univentures is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thantawan Industry Public and Univentures Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univentures Public 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 Univentures Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univentures Public has no effect on the direction of Thantawan Industry i.e., Thantawan Industry and Univentures Public go up and down completely randomly.

Pair Corralation between Thantawan Industry and Univentures Public

Assuming the 90 days trading horizon Thantawan Industry Public is expected to generate 0.63 times more return on investment than Univentures Public. However, Thantawan Industry Public is 1.58 times less risky than Univentures Public. It trades about -0.09 of its potential returns per unit of risk. Univentures Public is currently generating about -0.25 per unit of risk. If you would invest  2,875  in Thantawan Industry Public on December 24, 2024 and sell it today you would lose (200.00) from holding Thantawan Industry Public or give up 6.96% of portfolio value over 90 days.

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

Thantawan Industry Public  vs.  Univentures Public

Thantawan Industry Public

Risk-Adjusted Performance

Very Weak

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

Univentures Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Univentures Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Thantawan Industry and Univentures Public

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

The idea behind Thantawan Industry Public and Univentures 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.