Correlation Between Haad Thip and Kang Yong
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Kang Yong 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 Kang Yong 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 Kang Yong Electric, you can compare the effects of market volatilities on Haad Thip and Kang Yong 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 Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Kang Yong.
Diversification Opportunities for Haad Thip and Kang Yong
Modest diversification
The 3 months correlation between Haad and Kang is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric 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 Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of Haad Thip i.e., Haad Thip and Kang Yong go up and down completely randomly.
Pair Corralation between Haad Thip and Kang Yong
Assuming the 90 days trading horizon Haad Thip is expected to generate 66.09 times less return on investment than Kang Yong. But when comparing it to its historical volatility, Haad Thip Public is 46.65 times less risky than Kang Yong. It trades about 0.04 of its potential returns per unit of risk. Kang Yong Electric is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 26,464 in Kang Yong Electric on September 1, 2024 and sell it today you would earn a total of 2,236 from holding Kang Yong Electric or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Haad Thip Public vs. Kang Yong Electric
Performance |
| Timeline |
| Haad Thip Public |
| Kang Yong Electric |
Haad Thip and Kang Yong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Kang Yong
The main advantage of trading using opposite Haad Thip and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong'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 |
| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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