Correlation Between Thanachart Capital and Ratchthani Leasing

Can any of the company-specific risk be diversified away by investing in both Thanachart Capital and Ratchthani Leasing 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 Thanachart Capital and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Thanachart Capital and Ratchthani Leasing

0.42

Correlation Coefficient

Thanachart Capital  Ratchthani Leasing

Very weak diversification

The 3 months correlation between Thanachart and Ratchthani is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani Leasing Public and Thanachart Capital 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 Thanachart Capital Public are associated (or correlated) with Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Thanachart Capital i.e., Thanachart Capital and Ratchthani Leasing go up and down completely randomly.

Pair Corralation between Thanachart Capital and Ratchthani Leasing

Assuming the 90 days trading horizon Thanachart Capital is expected to generate 5.8 times less return on investment than Ratchthani Leasing. But when comparing it to its historical volatility, Thanachart Capital Public is 2.03 times less risky than Ratchthani Leasing. It trades about 0.03 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  145.00  in Ratchthani Leasing Public on April 24, 2025 and sell it today you would earn a total of  15.00  from holding Ratchthani Leasing Public or generate 10.34% return on investment over 90 days.

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

Thanachart Capital Public  vs.  Ratchthani Leasing Public

Thanachart Capital Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thanachart Capital Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Thanachart Capital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Ratchthani Leasing Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ratchthani Leasing Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Ratchthani Leasing may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Thanachart Capital and Ratchthani Leasing

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

The idea behind Thanachart Capital Public and Ratchthani Leasing 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.