Correlation Between GFPT Public and Haad Thip
Can any of the company-specific risk be diversified away by investing in both GFPT Public and Haad Thip 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 GFPT Public and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFPT Public and Haad Thip Public, you can compare the effects of market volatilities on GFPT Public and Haad Thip 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 GFPT Public with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFPT Public and Haad Thip.
Diversification Opportunities for GFPT Public and Haad Thip
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GFPT and Haad is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GFPT Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and GFPT Public 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 GFPT Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of GFPT Public i.e., GFPT Public and Haad Thip go up and down completely randomly.
Pair Corralation between GFPT Public and Haad Thip
Assuming the 90 days trading horizon GFPT Public is expected to generate 1.54 times less return on investment than Haad Thip. In addition to that, GFPT Public is 1.28 times more volatile than Haad Thip Public. It trades about 0.02 of its total potential returns per unit of risk. Haad Thip Public is currently generating about 0.04 per unit of volatility. If you would invest 1,445 in Haad Thip Public on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Haad Thip Public or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFPT Public vs. Haad Thip Public
Performance |
| Timeline |
| GFPT Public |
| Haad Thip Public |
GFPT Public and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFPT Public and Haad Thip
The main advantage of trading using opposite GFPT Public and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFPT Public position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| GFPT Public vs. MK Restaurant Group | GFPT Public vs. TRC Construction Public | GFPT Public vs. Bangkok Expressway and | GFPT Public vs. Lohakit Metal Public |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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