Correlation Between Dusit Thani and Golden Ventures
Can any of the company-specific risk be diversified away by investing in both Dusit Thani and Golden Ventures 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 Dusit Thani and Golden Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dusit Thani Freehold and Golden Ventures Leasehold, you can compare the effects of market volatilities on Dusit Thani and Golden Ventures 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 Dusit Thani with a short position of Golden Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusit Thani and Golden Ventures.
Diversification Opportunities for Dusit Thani and Golden Ventures
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dusit and Golden is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dusit Thani Freehold and Golden Ventures Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ventures Leasehold and Dusit Thani 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 Dusit Thani Freehold are associated (or correlated) with Golden Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ventures Leasehold has no effect on the direction of Dusit Thani i.e., Dusit Thani and Golden Ventures go up and down completely randomly.
Pair Corralation between Dusit Thani and Golden Ventures
Assuming the 90 days trading horizon Dusit Thani Freehold is expected to under-perform the Golden Ventures. But the stock apears to be less risky and, when comparing its historical volatility, Dusit Thani Freehold is 1.84 times less risky than Golden Ventures. The stock trades about -0.12 of its potential returns per unit of risk. The Golden Ventures Leasehold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Golden Ventures Leasehold on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Golden Ventures Leasehold or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dusit Thani Freehold vs. Golden Ventures Leasehold
Performance |
| Timeline |
| Dusit Thani Freehold |
| Golden Ventures Leasehold |
Dusit Thani and Golden Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dusit Thani and Golden Ventures
The main advantage of trading using opposite Dusit Thani and Golden Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dusit Thani position performs unexpectedly, Golden Ventures 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 Golden Ventures will offset losses from the drop in Golden Ventures' long position.| Dusit Thani vs. CPN Retail Growth | Dusit Thani vs. Grande Hospitality Real | Dusit Thani vs. The Erawan Group | Dusit Thani vs. Impact Growth REIT |
| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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