Correlation Between Asia Metal and Thai Wah
Can any of the company-specific risk be diversified away by investing in both Asia Metal and Thai Wah 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 Wah 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 Wah Public, you can compare the effects of market volatilities on Asia Metal and Thai Wah 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 Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Metal and Thai Wah.
Diversification Opportunities for Asia Metal and Thai Wah
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Thai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Asia Metal Public and Thai Wah Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Wah Public 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 Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Wah Public has no effect on the direction of Asia Metal i.e., Asia Metal and Thai Wah go up and down completely randomly.
Pair Corralation between Asia Metal and Thai Wah
Assuming the 90 days trading horizon Asia Metal Public is expected to generate 1.46 times more return on investment than Thai Wah. However, Asia Metal is 1.46 times more volatile than Thai Wah Public. It trades about -0.16 of its potential returns per unit of risk. Thai Wah Public is currently generating about -0.38 per unit of risk. If you would invest 220.00 in Asia Metal Public on October 24, 2024 and sell it today you would lose (26.00) from holding Asia Metal Public or give up 11.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Metal Public vs. Thai Wah Public
Performance |
| Timeline |
| Asia Metal Public |
| Thai Wah Public |
Asia Metal and Thai Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Metal and Thai Wah
The main advantage of trading using opposite Asia Metal and Thai Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Metal position performs unexpectedly, Thai Wah 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 Wah will offset losses from the drop in Thai Wah's long position.| Asia Metal vs. 2S Metal Public | Asia Metal vs. AAPICO Hitech Public | Asia Metal vs. CSP Steel Center | Asia Metal vs. Bangsaphan Barmill Public |
| Thai Wah vs. 2S Metal Public | Thai Wah vs. Planet Communications Asia | Thai Wah vs. Rich Sport Public | Thai Wah vs. G J Steel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |