Correlation Between Asia Metal and Thai Energy
Can any of the company-specific risk be diversified away by investing in both Asia Metal and Thai Energy 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 Metal and Thai Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Metal Public and Thai Energy Storage, you can compare the effects of market volatilities on Asia Metal and Thai Energy 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 Metal with a short position of Thai Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Metal and Thai Energy.
Diversification Opportunities for Asia Metal and Thai Energy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Thai is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Asia Metal Public and Thai Energy Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Energy Storage and Asia Metal 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 Metal Public are associated (or correlated) with Thai Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Energy Storage has no effect on the direction of Asia Metal i.e., Asia Metal and Thai Energy go up and down completely randomly.
Pair Corralation between Asia Metal and Thai Energy
Assuming the 90 days trading horizon Asia Metal Public is expected to under-perform the Thai Energy. In addition to that, Asia Metal is 5.07 times more volatile than Thai Energy Storage. It trades about -0.34 of its total potential returns per unit of risk. Thai Energy Storage is currently generating about 0.07 per unit of volatility. If you would invest 5,350 in Thai Energy Storage on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Thai Energy Storage or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Metal Public vs. Thai Energy Storage
Performance |
| Timeline |
| Asia Metal Public |
| Thai Energy Storage |
Asia Metal and Thai Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Metal and Thai Energy
The main advantage of trading using opposite Asia Metal and Thai Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Metal position performs unexpectedly, Thai Energy 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 Energy will offset losses from the drop in Thai Energy's long position.| Asia Metal vs. PTT Public | Asia Metal vs. PTT Exploration and | Asia Metal vs. CP ALL Public | Asia Metal vs. Kasikornbank Public |
| Thai Energy vs. AJ Advance Technology | Thai Energy vs. Asia Precision Public | Thai Energy vs. Asia Metal Public | Thai Energy vs. The Erawan Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |