Correlation Between Thoresen Thai and Samart Public

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

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

Diversification Opportunities for Thoresen Thai and Samart Public

0.48

Correlation Coefficient

Thoresen Thai  Samart Public

Very weak diversification

The 3 months correlation between Thoresen and Samart is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thoresen Thai Agencies and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Public and Thoresen Thai 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 Thoresen Thai Agencies are associated (or correlated) with Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of Thoresen Thai i.e., Thoresen Thai and Samart Public go up and down completely randomly.

Pair Corralation between Thoresen Thai and Samart Public

Assuming the 90 days trading horizon Thoresen Thai Agencies is expected to generate 0.85 times more return on investment than Samart Public. However, Thoresen Thai Agencies is 1.17 times less risky than Samart Public. It trades about 0.1 of its potential returns per unit of risk. Samart Public is currently generating about 0.04 per unit of risk. If you would invest  398.00  in Thoresen Thai Agencies on April 21, 2025 and sell it today you would earn a total of  40.00  from holding Thoresen Thai Agencies or generate 10.05% return on investment over 90 days.

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

Thoresen Thai Agencies  vs.  Samart Public

Thoresen Thai Agencies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thoresen Thai Agencies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Thoresen Thai may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Samart Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Samart Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Thoresen Thai and Samart Public

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

The idea behind Thoresen Thai Agencies and Samart 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.