Correlation Between Thitikorn Public and Thai Coating

Can any of the company-specific risk be diversified away by investing in both Thitikorn Public and Thai Coating 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 Thitikorn Public and Thai Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thitikorn Public and Thai Coating Industrial, you can compare the effects of market volatilities on Thitikorn Public and Thai Coating 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 Thitikorn Public with a short position of Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thitikorn Public and Thai Coating.

Diversification Opportunities for Thitikorn Public and Thai Coating

0.29

Correlation Coefficient

Thitikorn Public  Thai Coating

Modest diversification

The 3 months correlation between Thitikorn and Thai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Thitikorn Public and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial and Thitikorn Public 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 Thitikorn Public are associated (or correlated) with Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Thitikorn Public i.e., Thitikorn Public and Thai Coating go up and down completely randomly.

Pair Corralation between Thitikorn Public and Thai Coating

Assuming the 90 days horizon Thitikorn Public is expected to generate 20.0 times more return on investment than Thai Coating. However, Thitikorn Public is 20.0 times more volatile than Thai Coating Industrial. It trades about 0.07 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about 0.02 per unit of risk. If you would invest  452.00  in Thitikorn Public on November 28, 2024 and sell it today you would lose (78.00) from holding Thitikorn Public or give up 17.26% of portfolio value over 90 days.

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

Thitikorn Public  vs.  Thai Coating Industrial

Thitikorn Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thitikorn 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 March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Thai Coating Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thai Coating Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Thitikorn Public and Thai Coating

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

The idea behind Thitikorn Public and Thai Coating Industrial 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 Anywhere module to track or share privately all of your investments from the convenience of any device.