Correlation Between Global Power and Intouch Holdings
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By analyzing existing cross correlation between Global Power Synergy and Intouch Holdings Public, you can compare the effects of market volatilities on Global Power 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 Global Power with a short position of Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Power and Intouch Holdings.
Diversification Opportunities for Global Power and Intouch Holdings
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Intouch is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Global Power Synergy 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 Global Power 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 Global Power Synergy 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 Global Power i.e., Global Power and Intouch Holdings go up and down completely randomly.
Pair Corralation between Global Power and Intouch Holdings
Assuming the 90 days trading horizon Global Power is expected to generate 1.92 times less return on investment than Intouch Holdings. But when comparing it to its historical volatility, Global Power Synergy is 1.1 times less risky than Intouch Holdings. It trades about 0.07 of its potential returns per unit of risk. Intouch Holdings Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,250 in Intouch Holdings Public on September 2, 2024 and sell it today you would earn a total of 1,250 from holding Intouch Holdings Public or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Power Synergy vs. Intouch Holdings Public
Performance |
| Timeline |
| Global Power Synergy |
| Intouch Holdings Public |
Global Power and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Power and Intouch Holdings
The main advantage of trading using opposite Global Power and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Power 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.The idea behind Global Power Synergy and Intouch Holdings Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. True Public | Intouch Holdings vs. CP ALL Public | Intouch Holdings vs. The Siam Cement |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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