Correlation Between Hwa Fong and Internet Thailand
Can any of the company-specific risk be diversified away by investing in both Hwa Fong and Internet Thailand 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 Hwa Fong and Internet Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwa Fong Rubber and Internet Thailand Public, you can compare the effects of market volatilities on Hwa Fong and Internet Thailand 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 Hwa Fong with a short position of Internet Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwa Fong and Internet Thailand.
Diversification Opportunities for Hwa Fong and Internet Thailand
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hwa and Internet is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hwa Fong Rubber and Internet Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand Public and Hwa Fong 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 Hwa Fong Rubber are associated (or correlated) with Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand Public has no effect on the direction of Hwa Fong i.e., Hwa Fong and Internet Thailand go up and down completely randomly.
Pair Corralation between Hwa Fong and Internet Thailand
Assuming the 90 days trading horizon Hwa Fong Rubber is expected to under-perform the Internet Thailand. But the stock apears to be less risky and, when comparing its historical volatility, Hwa Fong Rubber is 6.36 times less risky than Internet Thailand. The stock trades about -0.27 of its potential returns per unit of risk. The Internet Thailand Public is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Internet Thailand Public on August 27, 2024 and sell it today you would earn a total of 241.00 from holding Internet Thailand Public or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwa Fong Rubber vs. Internet Thailand Public
Performance |
| Timeline |
| Hwa Fong Rubber |
| Internet Thailand Public |
Hwa Fong and Internet Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwa Fong and Internet Thailand
The main advantage of trading using opposite Hwa Fong and Internet Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwa Fong position performs unexpectedly, Internet Thailand 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 Internet Thailand will offset losses from the drop in Internet Thailand's long position.| Hwa Fong vs. SCB X Public | Hwa Fong vs. Kasikornbank Public | Hwa Fong vs. PTT Public | Hwa Fong vs. Kasikornbank Public |
| Internet Thailand vs. AP Public | Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Asia Plus Group | Internet Thailand vs. Bangkok Aviation Fuel |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |