Correlation Between Diamond Building and Intouch Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Diamond Building Products and Intouch Holdings Public, you can compare the effects of market volatilities on Diamond Building and Intouch Holdings 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 Diamond Building with a short position of Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Building and Intouch Holdings.
Diversification Opportunities for Diamond Building and Intouch Holdings
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamond and Intouch is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Building Products and Intouch Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Holdings Public and Diamond Building 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 Diamond Building Products are associated (or correlated) with Intouch Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Holdings Public has no effect on the direction of Diamond Building i.e., Diamond Building and Intouch Holdings go up and down completely randomly.
Pair Corralation between Diamond Building and Intouch Holdings
Assuming the 90 days trading horizon Diamond Building Products is expected to under-perform the Intouch Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Diamond Building Products is 3.51 times less risky than Intouch Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The Intouch Holdings Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,050 in Intouch Holdings Public on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Intouch Holdings Public or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Building Products vs. Intouch Holdings Public
Performance |
| Timeline |
| Diamond Building Products |
| Intouch Holdings Public |
Diamond Building and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Building and Intouch Holdings
The main advantage of trading using opposite Diamond Building and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Building position performs unexpectedly, Intouch Holdings 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 Intouch Holdings will offset losses from the drop in Intouch Holdings' long position.| Diamond Building vs. Haad Thip Public | Diamond Building vs. Lalin Property Public | Diamond Building vs. Dynasty Ceramic Public | Diamond Building vs. AP Public |
| Intouch Holdings vs. Hana Microelectronics Public | Intouch Holdings vs. Ekachai Medical Care | Intouch Holdings vs. Megachem Public | Intouch Holdings vs. Diamond Building Products |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |