Correlation Between Stock Exchange and Trinity Watthana
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Trinity Watthana 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 Stock Exchange and Trinity Watthana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Trinity Watthana Public, you can compare the effects of market volatilities on Stock Exchange and Trinity Watthana 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 Stock Exchange with a short position of Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Trinity Watthana.
Diversification Opportunities for Stock Exchange and Trinity Watthana
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stock and Trinity is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Trinity Watthana go up and down completely randomly.
Pair Corralation between Stock Exchange and Trinity Watthana
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Trinity Watthana. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 4.21 times less risky than Trinity Watthana. The index trades about -0.12 of its potential returns per unit of risk. The Trinity Watthana Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Trinity Watthana Public on September 25, 2024 and sell it today you would earn a total of 40.00 from holding Trinity Watthana Public or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Stock Exchange Of vs. Trinity Watthana Public
Performance |
Timeline |
Stock Exchange and Trinity Watthana Volatility Contrast
Predicted Return Density |
Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Trinity Watthana Public
Pair trading matchups for Trinity Watthana
Pair Trading with Stock Exchange and Trinity Watthana
The main advantage of trading using opposite Stock Exchange and Trinity Watthana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Trinity Watthana 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 Trinity Watthana will offset losses from the drop in Trinity Watthana's long position.Stock Exchange vs. Bangkok Sheet Metal | Stock Exchange vs. Symphony Communication Public | Stock Exchange vs. Porn Prom Metal | Stock Exchange vs. Fine Metal Technologies |
Trinity Watthana vs. Kasikornbank Public | Trinity Watthana vs. PTT Public | Trinity Watthana vs. The Siam Cement |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Bonds Directory Find actively traded corporate debentures issued by US companies |