Correlation Between TMC Industrial and Thanapiriya Public

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

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

Diversification Opportunities for TMC Industrial and Thanapiriya Public

0.5

Correlation Coefficient

TMC Industrial  Thanapiriya Public

Very weak diversification

The 3 months correlation between TMC and Thanapiriya is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding TMC Industrial Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and TMC Industrial 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 TMC Industrial Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of TMC Industrial i.e., TMC Industrial and Thanapiriya Public go up and down completely randomly.

Pair Corralation between TMC Industrial and Thanapiriya Public

Assuming the 90 days trading horizon TMC Industrial Public is expected to generate 2.58 times more return on investment than Thanapiriya Public. However, TMC Industrial is 2.58 times more volatile than Thanapiriya Public. It trades about 0.03 of its potential returns per unit of risk. Thanapiriya Public is currently generating about -0.07 per unit of risk. If you would invest  110.00  in TMC Industrial Public on September 15, 2024 and sell it today you would earn a total of  2.00  from holding TMC Industrial Public or generate 1.82% return on investment over 90 days.

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

TMC Industrial Public  vs.  Thanapiriya Public

TMC Industrial Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TMC Industrial Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, TMC Industrial may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Thanapiriya Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thanapiriya Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with TMC Industrial and Thanapiriya Public

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

The idea behind TMC Industrial Public and Thanapiriya 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.