Correlation Between Dusit Thani and Impact Growth
Can any of the company-specific risk be diversified away by investing in both Dusit Thani and Impact Growth 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 Impact Growth 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 Impact Growth REIT, you can compare the effects of market volatilities on Dusit Thani and Impact Growth 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 Impact Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusit Thani and Impact Growth.
Diversification Opportunities for Dusit Thani and Impact Growth
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dusit and Impact is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dusit Thani Freehold and Impact Growth REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Growth REIT 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 Impact Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Growth REIT has no effect on the direction of Dusit Thani i.e., Dusit Thani and Impact Growth go up and down completely randomly.
Pair Corralation between Dusit Thani and Impact Growth
Assuming the 90 days trading horizon Dusit Thani Freehold is expected to generate 0.68 times more return on investment than Impact Growth. However, Dusit Thani Freehold is 1.46 times less risky than Impact Growth. It trades about -0.12 of its potential returns per unit of risk. Impact Growth REIT is currently generating about -0.1 per unit of risk. If you would invest 510.00 in Dusit Thani Freehold on September 1, 2024 and sell it today you would lose (14.00) from holding Dusit Thani Freehold or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dusit Thani Freehold vs. Impact Growth REIT
Performance |
| Timeline |
| Dusit Thani Freehold |
| Impact Growth REIT |
Dusit Thani and Impact Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dusit Thani and Impact Growth
The main advantage of trading using opposite Dusit Thani and Impact Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dusit Thani position performs unexpectedly, Impact Growth 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 Impact Growth will offset losses from the drop in Impact Growth's 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 |
| Impact Growth vs. CPN Retail Growth | Impact Growth vs. WHA Premium Growth | Impact Growth vs. Golden Ventures Leasehold | Impact Growth 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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