Correlation Between Haad Thip and Lam Soon
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Lam Soon 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 Lam Soon 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 Lam Soon Public, you can compare the effects of market volatilities on Haad Thip and Lam Soon 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 Lam Soon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Lam Soon.
Diversification Opportunities for Haad Thip and Lam Soon
Modest diversification
The 3 months correlation between Haad and Lam is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Lam Soon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Soon 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 Lam Soon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Soon Public has no effect on the direction of Haad Thip i.e., Haad Thip and Lam Soon go up and down completely randomly.
Pair Corralation between Haad Thip and Lam Soon
Assuming the 90 days trading horizon Haad Thip Public is expected to under-perform the Lam Soon. In addition to that, Haad Thip is 1.34 times more volatile than Lam Soon Public. It trades about -0.1 of its total potential returns per unit of risk. Lam Soon Public is currently generating about 0.17 per unit of volatility. If you would invest 486.00 in Lam Soon Public on August 29, 2024 and sell it today you would earn a total of 19.00 from holding Lam Soon Public or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Lam Soon Public
Performance |
| Timeline |
| Haad Thip Public |
| Lam Soon Public |
Haad Thip and Lam Soon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Lam Soon
The main advantage of trading using opposite Haad Thip and Lam Soon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Lam Soon 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 Lam Soon will offset losses from the drop in Lam Soon'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |