Correlation Between Haad Thip and Land
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Land 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 Land 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 Land and Houses, you can compare the effects of market volatilities on Haad Thip and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Land.
Diversification Opportunities for Haad Thip and Land
Modest diversification
The 3 months correlation between Haad and Land is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Haad Thip i.e., Haad Thip and Land go up and down completely randomly.
Pair Corralation between Haad Thip and Land
Assuming the 90 days trading horizon Haad Thip is expected to generate 26.94 times less return on investment than Land. But when comparing it to its historical volatility, Haad Thip Public is 26.53 times less risky than Land. It trades about 0.04 of its potential returns per unit of risk. Land and Houses is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 867.00 in Land and Houses on August 28, 2024 and sell it today you would lose (307.00) from holding Land and Houses or give up 35.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Land and Houses
Performance |
| Timeline |
| Haad Thip Public |
| Land and Houses |
Haad Thip and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Land
The main advantage of trading using opposite Haad Thip and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Land 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 Land will offset losses from the drop in Land'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 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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