Correlation Between Haad Thip and Newcity Public
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Newcity Public 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 Newcity Public 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 Newcity Public, you can compare the effects of market volatilities on Haad Thip and Newcity Public 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 Newcity Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Newcity Public.
Diversification Opportunities for Haad Thip and Newcity Public
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haad and Newcity is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Newcity Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcity 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 Newcity Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcity Public has no effect on the direction of Haad Thip i.e., Haad Thip and Newcity Public go up and down completely randomly.
Pair Corralation between Haad Thip and Newcity Public
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.47 times more return on investment than Newcity Public. However, Haad Thip Public is 2.14 times less risky than Newcity Public. It trades about -0.14 of its potential returns per unit of risk. Newcity Public is currently generating about -0.13 per unit of risk. If you would invest 1,670 in Haad Thip Public on September 14, 2024 and sell it today you would lose (70.00) from holding Haad Thip Public or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Haad Thip Public vs. Newcity Public
Performance |
| Timeline |
| Haad Thip Public |
| Newcity Public |
Haad Thip and Newcity Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Newcity Public
The main advantage of trading using opposite Haad Thip and Newcity Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Newcity Public 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 Newcity Public will offset losses from the drop in Newcity Public'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 |
| Newcity Public vs. Hwa Fong Rubber | Newcity Public vs. AAPICO Hitech Public | Newcity Public vs. Haad Thip Public | Newcity Public 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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