Correlation Between Haad Thip and Com7 PCL
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Com7 PCL 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 Com7 PCL 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 Com7 PCL, you can compare the effects of market volatilities on Haad Thip and Com7 PCL 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 Com7 PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Com7 PCL.
Diversification Opportunities for Haad Thip and Com7 PCL
Weak diversification
The 3 months correlation between Haad and Com7 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Com7 PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com7 PCL 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 Com7 PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com7 PCL has no effect on the direction of Haad Thip i.e., Haad Thip and Com7 PCL go up and down completely randomly.
Pair Corralation between Haad Thip and Com7 PCL
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.6 times more return on investment than Com7 PCL. However, Haad Thip Public is 1.68 times less risky than Com7 PCL. It trades about 0.01 of its potential returns per unit of risk. Com7 PCL is currently generating about 0.0 per unit of risk. If you would invest 1,610 in Haad Thip Public on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Haad Thip Public or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Com7 PCL
Performance |
| Timeline |
| Haad Thip Public |
| Com7 PCL |
Haad Thip and Com7 PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Com7 PCL
The main advantage of trading using opposite Haad Thip and Com7 PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Com7 PCL 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 Com7 PCL will offset losses from the drop in Com7 PCL'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 |
| Com7 PCL vs. Hwa Fong Rubber | Com7 PCL vs. AAPICO Hitech Public | Com7 PCL vs. Haad Thip Public | Com7 PCL vs. Italian Thai Development 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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