Correlation Between Thaire Life and TTCL Public
Can any of the company-specific risk be diversified away by investing in both Thaire Life and TTCL 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 Thaire Life and TTCL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaire Life Assurance and TTCL Public, you can compare the effects of market volatilities on Thaire Life and TTCL 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 Thaire Life with a short position of TTCL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaire Life and TTCL Public.
Diversification Opportunities for Thaire Life and TTCL Public
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thaire and TTCL is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Thaire Life Assurance and TTCL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTCL Public and Thaire Life 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 Thaire Life Assurance are associated (or correlated) with TTCL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTCL Public has no effect on the direction of Thaire Life i.e., Thaire Life and TTCL Public go up and down completely randomly.
Pair Corralation between Thaire Life and TTCL Public
Assuming the 90 days trading horizon Thaire Life Assurance is expected to generate 1.25 times more return on investment than TTCL Public. However, Thaire Life is 1.25 times more volatile than TTCL Public. It trades about -0.21 of its potential returns per unit of risk. TTCL Public is currently generating about -0.35 per unit of risk. If you would invest 166.00 in Thaire Life Assurance on December 1, 2024 and sell it today you would lose (47.00) from holding Thaire Life Assurance or give up 28.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Thaire Life Assurance vs. TTCL Public
Performance |
Timeline |
Thaire Life Assurance |
TTCL Public |
Thaire Life and TTCL Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thaire Life and TTCL Public
The main advantage of trading using opposite Thaire Life and TTCL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaire Life position performs unexpectedly, TTCL 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 TTCL Public will offset losses from the drop in TTCL Public's long position.Thaire Life vs. Thai Reinsurance Public | Thaire Life vs. Ratchthani Leasing Public | Thaire Life vs. Bangkok Life Assurance | Thaire Life vs. Thanachart Capital Public |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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