Correlation Between Haad Thip and Minor International
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Minor International 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 Minor International 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 Minor International Public, you can compare the effects of market volatilities on Haad Thip and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Minor International.
Diversification Opportunities for Haad Thip and Minor International
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haad and Minor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Haad Thip i.e., Haad Thip and Minor International go up and down completely randomly.
Pair Corralation between Haad Thip and Minor International
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.26 times more return on investment than Minor International. However, Haad Thip Public is 3.79 times less risky than Minor International. It trades about -0.16 of its potential returns per unit of risk. Minor International Public is currently generating about -0.11 per unit of risk. If you would invest 1,650 in Haad Thip Public on January 12, 2025 and sell it today you would lose (40.00) from holding Haad Thip Public or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Minor International Public
Performance |
| Timeline |
| Haad Thip Public |
| Minor International |
Haad Thip and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Minor International
The main advantage of trading using opposite Haad Thip and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International'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 |
| Minor International vs. Newcity Public | Minor International vs. Pato Chemical Industry | Minor International vs. Ocean Glass Public | Minor International vs. Nawarat Patanakarn 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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