Correlation Between Samart Public and Thoresen Thai

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

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

Diversification Opportunities for Samart Public and Thoresen Thai

0.33

Correlation Coefficient

Samart Public  Thoresen Thai

Weak diversification

The 3 months correlation between Samart and Thoresen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samart Public and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies and Samart 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 Samart Public are associated (or correlated) with Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of Samart Public i.e., Samart Public and Thoresen Thai go up and down completely randomly.

Pair Corralation between Samart Public and Thoresen Thai

Assuming the 90 days trading horizon Samart Public is expected to under-perform the Thoresen Thai. In addition to that, Samart Public is 1.14 times more volatile than Thoresen Thai Agencies. It trades about -0.02 of its total potential returns per unit of risk. Thoresen Thai Agencies is currently generating about 0.04 per unit of volatility. If you would invest  412.00  in Thoresen Thai Agencies on April 24, 2025 and sell it today you would earn a total of  14.00  from holding Thoresen Thai Agencies or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Samart Public  vs.  Thoresen Thai Agencies

Samart Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Samart Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Thoresen Thai Agencies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Thoresen Thai Agencies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Thoresen Thai is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Samart Public and Thoresen Thai

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

The idea behind Samart Public and Thoresen Thai Agencies 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.