Correlation Between Grand Canal and Thai Reinsurance
Can any of the company-specific risk be diversified away by investing in both Grand Canal and Thai Reinsurance 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 Grand Canal and Thai Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canal Land and Thai Reinsurance Public, you can compare the effects of market volatilities on Grand Canal and Thai Reinsurance 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 Grand Canal with a short position of Thai Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canal and Thai Reinsurance.
Diversification Opportunities for Grand Canal and Thai Reinsurance
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grand and Thai is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canal Land and Thai Reinsurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Reinsurance Public and Grand Canal 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 Grand Canal Land are associated (or correlated) with Thai Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Reinsurance Public has no effect on the direction of Grand Canal i.e., Grand Canal and Thai Reinsurance go up and down completely randomly.
Pair Corralation between Grand Canal and Thai Reinsurance
Assuming the 90 days trading horizon Grand Canal Land is expected to generate 1.56 times more return on investment than Thai Reinsurance. However, Grand Canal is 1.56 times more volatile than Thai Reinsurance Public. It trades about 0.06 of its potential returns per unit of risk. Thai Reinsurance Public is currently generating about -0.26 per unit of risk. If you would invest 153.00 in Grand Canal Land on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Grand Canal Land or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Canal Land vs. Thai Reinsurance Public
Performance |
| Timeline |
| Grand Canal Land |
| Thai Reinsurance Public |
Grand Canal and Thai Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canal and Thai Reinsurance
The main advantage of trading using opposite Grand Canal and Thai Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canal position performs unexpectedly, Thai Reinsurance 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 Reinsurance will offset losses from the drop in Thai Reinsurance's long position.| Grand Canal vs. Eastern Star Real | Grand Canal vs. Ananda Development Public | Grand Canal vs. Better World Green | Grand Canal vs. Dcon Products Public |
| Thai Reinsurance vs. Karmarts Public | Thai Reinsurance vs. Kang Yong Electric | Thai Reinsurance vs. SCG PACKAGING PCL NVDR | Thai Reinsurance vs. CK Power Public |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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