Correlation Between Asia Sermkij and Thai OPP
Can any of the company-specific risk be diversified away by investing in both Asia Sermkij and Thai OPP 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 Sermkij and Thai OPP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Sermkij Leasing and Thai OPP Public, you can compare the effects of market volatilities on Asia Sermkij and Thai OPP 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 Sermkij with a short position of Thai OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Sermkij and Thai OPP.
Diversification Opportunities for Asia Sermkij and Thai OPP
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Thai is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asia Sermkij Leasing and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP Public and Asia Sermkij 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 Sermkij Leasing are associated (or correlated) with Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of Asia Sermkij i.e., Asia Sermkij and Thai OPP go up and down completely randomly.
Pair Corralation between Asia Sermkij and Thai OPP
Assuming the 90 days trading horizon Asia Sermkij Leasing is expected to under-perform the Thai OPP. But the stock apears to be less risky and, when comparing its historical volatility, Asia Sermkij Leasing is 21.31 times less risky than Thai OPP. The stock trades about -0.1 of its potential returns per unit of risk. The Thai OPP Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 15,196 in Thai OPP Public on August 28, 2024 and sell it today you would earn a total of 1,704 from holding Thai OPP Public or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asia Sermkij Leasing vs. Thai OPP Public
Performance |
| Timeline |
| Asia Sermkij Leasing |
| Thai OPP Public |
Asia Sermkij and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Sermkij and Thai OPP
The main advantage of trading using opposite Asia Sermkij and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Sermkij position performs unexpectedly, Thai OPP 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 OPP will offset losses from the drop in Thai OPP's long position.| Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group Public |
| Thai OPP vs. Asia Sermkij Leasing | Thai OPP vs. WHA Utilities and | Thai OPP vs. Halcyon Technology Public | Thai OPP vs. Turnkey Communication Services |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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