Correlation Between TTCL Public and Krungdhep Sophon
Can any of the company-specific risk be diversified away by investing in both TTCL Public and Krungdhep Sophon 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 TTCL Public and Krungdhep Sophon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTCL Public and Krungdhep Sophon Public, you can compare the effects of market volatilities on TTCL Public and Krungdhep Sophon 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 TTCL Public with a short position of Krungdhep Sophon. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTCL Public and Krungdhep Sophon.
Diversification Opportunities for TTCL Public and Krungdhep Sophon
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TTCL and Krungdhep is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding TTCL Public and Krungdhep Sophon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungdhep Sophon Public and TTCL 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 TTCL Public are associated (or correlated) with Krungdhep Sophon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krungdhep Sophon Public has no effect on the direction of TTCL Public i.e., TTCL Public and Krungdhep Sophon go up and down completely randomly.
Pair Corralation between TTCL Public and Krungdhep Sophon
Assuming the 90 days trading horizon TTCL Public is expected to under-perform the Krungdhep Sophon. But the stock apears to be less risky and, when comparing its historical volatility, TTCL Public is 1.64 times less risky than Krungdhep Sophon. The stock trades about -0.41 of its potential returns per unit of risk. The Krungdhep Sophon Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 34,300 in Krungdhep Sophon Public on December 5, 2024 and sell it today you would earn a total of 200.00 from holding Krungdhep Sophon Public or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TTCL Public vs. Krungdhep Sophon Public
Performance |
Timeline |
TTCL Public |
Krungdhep Sophon Public |
TTCL Public and Krungdhep Sophon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TTCL Public and Krungdhep Sophon
The main advantage of trading using opposite TTCL Public and Krungdhep Sophon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTCL Public position performs unexpectedly, Krungdhep Sophon 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 Krungdhep Sophon will offset losses from the drop in Krungdhep Sophon's long position.TTCL Public vs. STPI Public | TTCL Public vs. WHA Public | TTCL Public vs. Italian Thai Development Public | TTCL Public vs. Jasmine International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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