Correlation Between Globlex Holding and Thai Steel
Can any of the company-specific risk be diversified away by investing in both Globlex Holding and Thai Steel 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 Globlex Holding and Thai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globlex Holding Management and Thai Steel Cable, you can compare the effects of market volatilities on Globlex Holding and Thai Steel 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 Globlex Holding with a short position of Thai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globlex Holding and Thai Steel.
Diversification Opportunities for Globlex Holding and Thai Steel
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Globlex and Thai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Globlex Holding Management and Thai Steel Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Steel Cable and Globlex Holding 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 Globlex Holding Management are associated (or correlated) with Thai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Steel Cable has no effect on the direction of Globlex Holding i.e., Globlex Holding and Thai Steel go up and down completely randomly.
Pair Corralation between Globlex Holding and Thai Steel
Assuming the 90 days trading horizon Globlex Holding Management is expected to under-perform the Thai Steel. In addition to that, Globlex Holding is 2.12 times more volatile than Thai Steel Cable. It trades about -0.21 of its total potential returns per unit of risk. Thai Steel Cable is currently generating about 0.2 per unit of volatility. If you would invest 1,430 in Thai Steel Cable on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Thai Steel Cable or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globlex Holding Management vs. Thai Steel Cable
Performance |
| Timeline |
| Globlex Holding Mana |
| Thai Steel Cable |
Globlex Holding and Thai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globlex Holding and Thai Steel
The main advantage of trading using opposite Globlex Holding and Thai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globlex Holding position performs unexpectedly, Thai Steel 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 Steel will offset losses from the drop in Thai Steel's long position.| Globlex Holding vs. Thai Steel Cable | Globlex Holding vs. Tropical Canning Public | Globlex Holding vs. RB Food Supply | Globlex Holding vs. Eureka Design Public |
| Thai Steel vs. Central Pattana Public | Thai Steel vs. CP ALL Public | Thai Steel vs. Bangkok Dusit Medical | Thai Steel vs. Airports of Thailand |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |