Correlation Between Haad Thip and Sri Trang
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Sri Trang 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 Sri Trang 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 Sri Trang Agro Industry, you can compare the effects of market volatilities on Haad Thip and Sri Trang 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 Sri Trang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Sri Trang.
Diversification Opportunities for Haad Thip and Sri Trang
Very good diversification
The 3 months correlation between Haad and Sri is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Sri Trang Agro Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Trang Agro 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 Sri Trang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Trang Agro has no effect on the direction of Haad Thip i.e., Haad Thip and Sri Trang go up and down completely randomly.
Pair Corralation between Haad Thip and Sri Trang
Assuming the 90 days trading horizon Haad Thip is expected to generate 12.04 times less return on investment than Sri Trang. But when comparing it to its historical volatility, Haad Thip Public is 2.07 times less risky than Sri Trang. It trades about 0.01 of its potential returns per unit of risk. Sri Trang Agro Industry is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,259 in Sri Trang Agro Industry on September 12, 2024 and sell it today you would earn a total of 631.00 from holding Sri Trang Agro Industry or generate 50.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. Sri Trang Agro Industry
Performance |
| Timeline |
| Haad Thip Public |
| Sri Trang Agro |
Haad Thip and Sri Trang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Sri Trang
The main advantage of trading using opposite Haad Thip and Sri Trang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Sri Trang 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 Sri Trang will offset losses from the drop in Sri Trang'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 |
| Sri Trang vs. Hwa Fong Rubber | Sri Trang vs. AAPICO Hitech Public | Sri Trang vs. Haad Thip Public | Sri Trang 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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