Correlation Between ABF Thailand and United Hero
Can any of the company-specific risk be diversified away by investing in both ABF Thailand and United Hero 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 ABF Thailand and United Hero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The ABF Thailand and United Hero ETF, you can compare the effects of market volatilities on ABF Thailand and United Hero 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 ABF Thailand with a short position of United Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABF Thailand and United Hero.
Diversification Opportunities for ABF Thailand and United Hero
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABF and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The ABF Thailand and United Hero ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Hero ETF and ABF Thailand 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 The ABF Thailand are associated (or correlated) with United Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Hero ETF has no effect on the direction of ABF Thailand i.e., ABF Thailand and United Hero go up and down completely randomly.
Pair Corralation between ABF Thailand and United Hero
Assuming the 90 days trading horizon ABF Thailand is expected to generate 5045.25 times less return on investment than United Hero. But when comparing it to its historical volatility, The ABF Thailand is 241.14 times less risky than United Hero. It trades about 0.01 of its potential returns per unit of risk. United Hero ETF is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 714.00 in United Hero ETF on September 12, 2024 and sell it today you would earn a total of 141.00 from holding United Hero ETF or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
The ABF Thailand vs. United Hero ETF
Performance |
| Timeline |
| ABF Thailand |
| United Hero ETF |
ABF Thailand and United Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABF Thailand and United Hero
The main advantage of trading using opposite ABF Thailand and United Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABF Thailand position performs unexpectedly, United Hero 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 United Hero will offset losses from the drop in United Hero's long position.| ABF Thailand vs. United Hero ETF | ABF Thailand vs. BCAP SET100 | ABF Thailand vs. WISE KTAM CSI | ABF Thailand vs. KTAM Gold ETF |
| United Hero vs. BCAP MSCI Thailand | United Hero vs. BCAP SET100 | United Hero vs. KTAM Gold ETF | United Hero vs. WISE KTAM CSI |
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.
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