Correlation Between T S and Thanapiriya Public

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

Diversification Opportunities for T S and Thanapiriya Public

0.82

Correlation Coefficient

T S  Thanapiriya Public

Very poor diversification

The 3 months correlation between TMILL and Thanapiriya is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding T S Flour and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya 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 Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of T S i.e., T S and Thanapiriya Public go up and down completely randomly.

Pair Corralation between T S and Thanapiriya Public

Assuming the 90 days trading horizon T S Flour is expected to under-perform the Thanapiriya Public. In addition to that, T S is 1.76 times more volatile than Thanapiriya Public. It trades about -0.29 of its total potential returns per unit of risk. Thanapiriya Public is currently generating about -0.18 per unit of volatility. If you would invest  318.00  in Thanapiriya Public on December 26, 2024 and sell it today you would lose (48.00) from holding Thanapiriya Public or give up 15.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

T S Flour  vs.  Thanapiriya Public

T S Flour

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Thanapiriya Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thanapiriya 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 basic indicators 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 T S and Thanapiriya Public

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

The idea behind T S Flour and Thanapiriya 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.