Correlation Between Haad Thip and Dcon Products
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Dcon Products 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 Dcon Products 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 Dcon Products Public, you can compare the effects of market volatilities on Haad Thip and Dcon Products 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 Dcon Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Dcon Products.
Diversification Opportunities for Haad Thip and Dcon Products
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haad and Dcon is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Dcon Products Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dcon Products 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 Dcon Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dcon Products Public has no effect on the direction of Haad Thip i.e., Haad Thip and Dcon Products go up and down completely randomly.
Pair Corralation between Haad Thip and Dcon Products
Assuming the 90 days trading horizon Haad Thip Public is expected to under-perform the Dcon Products. But the stock apears to be less risky and, when comparing its historical volatility, Haad Thip Public is 1.5 times less risky than Dcon Products. The stock trades about -0.14 of its potential returns per unit of risk. The Dcon Products Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Dcon Products Public on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Dcon Products Public or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Dcon Products Public
Performance |
| Timeline |
| Haad Thip Public |
| Dcon Products Public |
Haad Thip and Dcon Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Dcon Products
The main advantage of trading using opposite Haad Thip and Dcon Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Dcon Products 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 Dcon Products will offset losses from the drop in Dcon Products' 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 |
| Dcon Products vs. Thantawan Industry Public | Dcon Products vs. The Erawan Group | Dcon Products vs. Jay Mart Public | Dcon Products vs. Airports of Thailand |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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