Correlation Between Thai Stanley and Qualitech Public

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

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

Diversification Opportunities for Thai Stanley and Qualitech Public

0.89

Correlation Coefficient

Thai Stanley  Qualitech Public

Very poor diversification

The 3 months correlation between Thai and Qualitech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Thai Stanley Electric and Qualitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualitech Public and Thai Stanley 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 Thai Stanley Electric are associated (or correlated) with Qualitech Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualitech Public has no effect on the direction of Thai Stanley i.e., Thai Stanley and Qualitech Public go up and down completely randomly.

Pair Corralation between Thai Stanley and Qualitech Public

Assuming the 90 days trading horizon Thai Stanley Electric is expected to generate 0.32 times more return on investment than Qualitech Public. However, Thai Stanley Electric is 3.15 times less risky than Qualitech Public. It trades about -0.19 of its potential returns per unit of risk. Qualitech Public is currently generating about -0.1 per unit of risk. If you would invest  21,056  in Thai Stanley Electric on April 25, 2025 and sell it today you would lose (2,356) from holding Thai Stanley Electric or give up 11.19% of portfolio value over 90 days.

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

Thai Stanley Electric  vs.  Qualitech Public

Thai Stanley Electric

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thai Stanley Electric has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Qualitech Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qualitech 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 August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Thai Stanley and Qualitech Public

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

The idea behind Thai Stanley Electric and Qualitech 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.