Correlation Between Haad Thip and CK Power
Can any of the company-specific risk be diversified away by investing in both Haad Thip and CK Power 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 Haad Thip and CK Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and CK Power Public, you can compare the effects of market volatilities on Haad Thip and CK Power 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 Haad Thip with a short position of CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and CK Power.
Diversification Opportunities for Haad Thip and CK Power
Pay attention - limited upside
The 3 months correlation between Haad and CKP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and CK Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Power Public and Haad Thip 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 Haad Thip Public are associated (or correlated) with CK Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Power Public has no effect on the direction of Haad Thip i.e., Haad Thip and CK Power go up and down completely randomly.
Pair Corralation between Haad Thip and CK Power
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.93 times more return on investment than CK Power. However, Haad Thip Public is 1.07 times less risky than CK Power. It trades about 0.03 of its potential returns per unit of risk. CK Power Public is currently generating about -0.03 per unit of risk. If you would invest 1,384 in Haad Thip Public on September 1, 2024 and sell it today you would earn a total of 236.00 from holding Haad Thip Public or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. CK Power Public
Performance |
| Timeline |
| Haad Thip Public |
| CK Power Public |
Haad Thip and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and CK Power
The main advantage of trading using opposite Haad Thip and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, CK Power 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 CK Power will offset losses from the drop in CK Power's long position.| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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