Correlation Between T S and Thai Mitsuwa

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

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

Diversification Opportunities for T S and Thai Mitsuwa

0.85

Correlation Coefficient

T S  Thai Mitsuwa

Very poor diversification

The 3 months correlation between TMILL and Thai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding T S Flour and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa Public and T S 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 T S Flour are associated (or correlated) with Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of T S i.e., T S and Thai Mitsuwa go up and down completely randomly.

Pair Corralation between T S and Thai Mitsuwa

Assuming the 90 days trading horizon T S Flour is expected to under-perform the Thai Mitsuwa. In addition to that, T S is 1.52 times more volatile than Thai Mitsuwa Public. It trades about -0.24 of its total potential returns per unit of risk. Thai Mitsuwa Public is currently generating about -0.03 per unit of volatility. If you would invest  6,375  in Thai Mitsuwa Public on September 5, 2024 and sell it today you would lose (75.00) from holding Thai Mitsuwa Public or give up 1.18% of portfolio value over 90 days.

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

T S Flour  vs.  Thai Mitsuwa Public

T S Flour

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days T S Flour has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Thai Mitsuwa Public

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Mitsuwa Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Thai Mitsuwa may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with T S and Thai Mitsuwa

The main advantage of trading using opposite T S and Thai Mitsuwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T S position performs unexpectedly, Thai Mitsuwa 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 Thai Mitsuwa will offset losses from the drop in Thai Mitsuwa's long position.

The idea behind T S Flour and Thai Mitsuwa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.