Correlation Between Global Service and Infraset Public
Can any of the company-specific risk be diversified away by investing in both Global Service and Infraset Public 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 Global Service and Infraset Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Service Center and Infraset Public, you can compare the effects of market volatilities on Global Service and Infraset Public 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 Service with a short position of Infraset Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Service and Infraset Public.
Diversification Opportunities for Global Service and Infraset Public
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Infraset is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Global Service Center and Infraset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infraset Public and Global Service 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 Service Center are associated (or correlated) with Infraset Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infraset Public has no effect on the direction of Global Service i.e., Global Service and Infraset Public go up and down completely randomly.
Pair Corralation between Global Service and Infraset Public
Assuming the 90 days trading horizon Global Service Center is expected to under-perform the Infraset Public. But the stock apears to be less risky and, when comparing its historical volatility, Global Service Center is 1.12 times less risky than Infraset Public. The stock trades about -0.17 of its potential returns per unit of risk. The Infraset Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Infraset Public on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Infraset Public or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Global Service Center vs. Infraset Public
Performance |
| Timeline |
| Global Service Center |
| Infraset Public |
Global Service and Infraset Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Service and Infraset Public
The main advantage of trading using opposite Global Service and Infraset Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Service position performs unexpectedly, Infraset Public 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 Infraset Public will offset losses from the drop in Infraset Public's long position.| Global Service vs. Asphere Innovations Public | Global Service vs. Com7 PCL | Global Service vs. TKS Technologies Public | Global Service vs. Rajthanee Hospital Public |
| Infraset Public vs. Interlink Telecom Public | Infraset Public vs. Internet Thailand Public | Infraset Public vs. Humanica Public | Infraset Public vs. Hana Microelectronics 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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