Correlation Between Haad Thip and Erawan
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Erawan 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 Erawan 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 The Erawan Group, you can compare the effects of market volatilities on Haad Thip and Erawan 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 Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Erawan.
Diversification Opportunities for Haad Thip and Erawan
Good diversification
The 3 months correlation between Haad and Erawan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group 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 Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Haad Thip i.e., Haad Thip and Erawan go up and down completely randomly.
Pair Corralation between Haad Thip and Erawan
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.73 times more return on investment than Erawan. However, Haad Thip Public is 1.38 times less risky than Erawan. It trades about 0.0 of its potential returns per unit of risk. The Erawan Group is currently generating about -0.01 per unit of risk. If you would invest 1,640 in Haad Thip Public on September 13, 2024 and sell it today you would lose (10.00) from holding Haad Thip Public or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. The Erawan Group
Performance |
| Timeline |
| Haad Thip Public |
| Erawan Group |
Haad Thip and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Erawan
The main advantage of trading using opposite Haad Thip and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| Haad Thip vs. GFPT Public | Haad Thip vs. Dynasty Ceramic Public | Haad Thip vs. The Erawan Group | Haad Thip vs. Jay Mart Public |
| Erawan vs. Hwa Fong Rubber | Erawan vs. AAPICO Hitech Public | Erawan vs. Haad Thip Public | Erawan 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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