Correlation Between T S and Thaifoods Group

Can any of the company-specific risk be diversified away by investing in both T S and Thaifoods Group 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 T S and Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between T S Flour and Thaifoods Group Public, you can compare the effects of market volatilities on T S and Thaifoods Group 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 T S with a short position of Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of T S and Thaifoods Group.

Diversification Opportunities for T S and Thaifoods Group

0.22

Correlation Coefficient

T S  Thaifoods Group

Modest diversification

The 3 months correlation between TMILL and Thaifoods is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding T S Flour and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group Public and T S 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 T S Flour are associated (or correlated) with Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of T S i.e., T S and Thaifoods Group go up and down completely randomly.

Pair Corralation between T S and Thaifoods Group

Assuming the 90 days trading horizon T S Flour is expected to generate 0.96 times more return on investment than Thaifoods Group. However, T S Flour is 1.04 times less risky than Thaifoods Group. It trades about -0.18 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.23 per unit of risk. If you would invest  366.00  in T S Flour on September 4, 2024 and sell it today you would lose (62.00) from holding T S Flour or give up 16.94% of portfolio value over 90 days.

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

T S Flour  vs.  Thaifoods Group Public

T S Flour

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days T S Flour 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 somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Thaifoods Group Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thaifoods Group 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 technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with T S and Thaifoods Group

The main advantage of trading using opposite T S and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T S position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.

The idea behind T S Flour and Thaifoods Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.