Correlation Between Haad Thip and IT City
Can any of the company-specific risk be diversified away by investing in both Haad Thip and IT City 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 IT City 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 IT City Public, you can compare the effects of market volatilities on Haad Thip and IT City 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 IT City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and IT City.
Diversification Opportunities for Haad Thip and IT City
Very weak diversification
The 3 months correlation between Haad and IT City is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and IT City Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IT City 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 IT City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IT City Public has no effect on the direction of Haad Thip i.e., Haad Thip and IT City go up and down completely randomly.
Pair Corralation between Haad Thip and IT City
Assuming the 90 days trading horizon Haad Thip is expected to generate 32.75 times less return on investment than IT City. But when comparing it to its historical volatility, Haad Thip Public is 26.63 times less risky than IT City. It trades about 0.03 of its potential returns per unit of risk. IT City Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 566.00 in IT City Public on October 10, 2024 and sell it today you would lose (126.00) from holding IT City Public or give up 22.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Haad Thip Public vs. IT City Public
Performance |
| Timeline |
| Haad Thip Public |
| IT City Public |
Haad Thip and IT City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and IT City
The main advantage of trading using opposite Haad Thip and IT City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, IT City 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 IT City will offset losses from the drop in IT City'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 |
| IT City vs. Internet Thailand Public | IT City vs. Jasmine International Public | IT City vs. Hana Microelectronics Public | IT City 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 CEOs Directory module to screen CEOs from public companies around the world.
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