Correlation Between Dusit Thani and WHA Premium
Can any of the company-specific risk be diversified away by investing in both Dusit Thani and WHA Premium 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 WHA Premium 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 WHA Premium Growth, you can compare the effects of market volatilities on Dusit Thani and WHA Premium 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 WHA Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusit Thani and WHA Premium.
Diversification Opportunities for Dusit Thani and WHA Premium
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dusit and WHA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dusit Thani Freehold and WHA Premium Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Premium Growth 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 WHA Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Premium Growth has no effect on the direction of Dusit Thani i.e., Dusit Thani and WHA Premium go up and down completely randomly.
Pair Corralation between Dusit Thani and WHA Premium
Assuming the 90 days trading horizon Dusit Thani Freehold is expected to under-perform the WHA Premium. But the stock apears to be less risky and, when comparing its historical volatility, Dusit Thani Freehold is 1.35 times less risky than WHA Premium. The stock trades about -0.12 of its potential returns per unit of risk. The WHA Premium Growth is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,011 in WHA Premium Growth on September 1, 2024 and sell it today you would lose (11.00) from holding WHA Premium Growth or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dusit Thani Freehold vs. WHA Premium Growth
Performance |
| Timeline |
| Dusit Thani Freehold |
| WHA Premium Growth |
Dusit Thani and WHA Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dusit Thani and WHA Premium
The main advantage of trading using opposite Dusit Thani and WHA Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dusit Thani position performs unexpectedly, WHA Premium 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 WHA Premium will offset losses from the drop in WHA Premium'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 |
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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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