Correlation Between Haad Thip and Diamond Building
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Diamond Building 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 Diamond Building 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 Diamond Building Products, you can compare the effects of market volatilities on Haad Thip and Diamond Building 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 Diamond Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Diamond Building.
Diversification Opportunities for Haad Thip and Diamond Building
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haad and Diamond is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Diamond Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Building Products 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 Diamond Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Building Products has no effect on the direction of Haad Thip i.e., Haad Thip and Diamond Building go up and down completely randomly.
Pair Corralation between Haad Thip and Diamond Building
Assuming the 90 days trading horizon Haad Thip Public is expected to under-perform the Diamond Building. In addition to that, Haad Thip is 2.58 times more volatile than Diamond Building Products. It trades about -0.01 of its total potential returns per unit of risk. Diamond Building Products is currently generating about 0.02 per unit of volatility. If you would invest 736.00 in Diamond Building Products on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Diamond Building Products or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Diamond Building Products
Performance |
| Timeline |
| Haad Thip Public |
| Diamond Building Products |
Haad Thip and Diamond Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Diamond Building
The main advantage of trading using opposite Haad Thip and Diamond Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Diamond Building 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 Diamond Building will offset losses from the drop in Diamond Building'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 |
| Diamond Building vs. Haad Thip Public | Diamond Building vs. Lalin Property Public | Diamond Building vs. Dynasty Ceramic Public | Diamond Building vs. AP 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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