Correlation Between Trinity Watthana and Thitikorn Public

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

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

Diversification Opportunities for Trinity Watthana and Thitikorn Public

0.96

Correlation Coefficient

Trinity Watthana  Thitikorn Public

Almost no diversification

The 3 months correlation between Trinity and Thitikorn is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Watthana Public and Thitikorn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thitikorn Public and Trinity Watthana 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 Trinity Watthana Public are associated (or correlated) with Thitikorn Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thitikorn Public has no effect on the direction of Trinity Watthana i.e., Trinity Watthana and Thitikorn Public go up and down completely randomly.

Pair Corralation between Trinity Watthana and Thitikorn Public

Assuming the 90 days trading horizon Trinity Watthana Public is expected to under-perform the Thitikorn Public. In addition to that, Trinity Watthana is 1.36 times more volatile than Thitikorn Public. It trades about -0.27 of its total potential returns per unit of risk. Thitikorn Public is currently generating about -0.2 per unit of volatility. If you would invest  438.00  in Thitikorn Public on December 23, 2024 and sell it today you would lose (80.00) from holding Thitikorn Public or give up 18.26% of portfolio value over 90 days.

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

Trinity Watthana Public  vs.  Thitikorn Public

Trinity Watthana Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trinity Watthana 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 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.

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 weak 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 Trinity Watthana and Thitikorn Public

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

The idea behind Trinity Watthana Public and Thitikorn 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.