Correlation Between Srisawad Power and Thanachart Capital
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Thanachart Capital 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 Srisawad Power and Thanachart Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and Thanachart Capital Public, you can compare the effects of market volatilities on Srisawad Power and Thanachart Capital 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 Srisawad Power with a short position of Thanachart Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Thanachart Capital.
Diversification Opportunities for Srisawad Power and Thanachart Capital
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Srisawad and Thanachart is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and Thanachart Capital go up and down completely randomly.
Pair Corralation between Srisawad Power and Thanachart Capital
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to under-perform the Thanachart Capital. In addition to that, Srisawad Power is 3.67 times more volatile than Thanachart Capital Public. It trades about -0.19 of its total potential returns per unit of risk. Thanachart Capital Public is currently generating about 0.03 per unit of volatility. If you would invest 4,725 in Thanachart Capital Public on April 24, 2025 and sell it today you would earn a total of 75.00 from holding Thanachart Capital Public or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Srisawad Power 1979 vs. Thanachart Capital Public
Performance |
Timeline |
Srisawad Power 1979 |
Thanachart Capital Public |
Srisawad Power and Thanachart Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Srisawad Power and Thanachart Capital
The main advantage of trading using opposite Srisawad Power and Thanachart Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Thanachart Capital 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 Thanachart Capital will offset losses from the drop in Thanachart Capital's long position.Srisawad Power vs. Synergetic Auto Performance | Srisawad Power vs. Chow Steel Industries | Srisawad Power vs. Unique Mining Services | Srisawad Power vs. Asia Sermkij Leasing |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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