Correlation Between ASIA Capital and Cho Thavee
Can any of the company-specific risk be diversified away by investing in both ASIA Capital and Cho Thavee 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 ASIA Capital and Cho Thavee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASIA Capital Group and Cho Thavee Public, you can compare the effects of market volatilities on ASIA Capital and Cho Thavee 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 ASIA Capital with a short position of Cho Thavee. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASIA Capital and Cho Thavee.
Diversification Opportunities for ASIA Capital and Cho Thavee
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASIA and Cho is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ASIA Capital Group and Cho Thavee Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Thavee Public and ASIA Capital 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 ASIA Capital Group are associated (or correlated) with Cho Thavee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Thavee Public has no effect on the direction of ASIA Capital i.e., ASIA Capital and Cho Thavee go up and down completely randomly.
Pair Corralation between ASIA Capital and Cho Thavee
Assuming the 90 days trading horizon ASIA Capital Group is expected to under-perform the Cho Thavee. In addition to that, ASIA Capital is 1.78 times more volatile than Cho Thavee Public. It trades about -0.21 of its total potential returns per unit of risk. Cho Thavee Public is currently generating about -0.01 per unit of volatility. If you would invest 6.00 in Cho Thavee Public on September 1, 2024 and sell it today you would lose (1.00) from holding Cho Thavee Public or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASIA Capital Group vs. Cho Thavee Public
Performance |
| Timeline |
| ASIA Capital Group |
| Cho Thavee Public |
ASIA Capital and Cho Thavee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASIA Capital and Cho Thavee
The main advantage of trading using opposite ASIA Capital and Cho Thavee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASIA Capital position performs unexpectedly, Cho Thavee 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 Cho Thavee will offset losses from the drop in Cho Thavee's long position.| ASIA Capital vs. East Coast Furnitech | ASIA Capital vs. Filter Vision Public | ASIA Capital vs. Cho Thavee Public | ASIA Capital vs. Akkhie Prakarn Public |
| Cho Thavee vs. Phol Dhanya Public | Cho Thavee vs. PTT Oil and | Cho Thavee vs. Pico Public | Cho Thavee vs. Pioneer Motor Public |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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