Correlation Between Haad Thip and Thai Stanley
Can any of the company-specific risk be diversified away by investing in both Haad Thip and Thai Stanley 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 Thai Stanley 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 Thai Stanley Electric, you can compare the effects of market volatilities on Haad Thip and Thai Stanley 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 Thai Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Thai Stanley.
Diversification Opportunities for Haad Thip and Thai Stanley
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haad and Thai is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Thai Stanley Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Stanley Electric 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 Thai Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Stanley Electric has no effect on the direction of Haad Thip i.e., Haad Thip and Thai Stanley go up and down completely randomly.
Pair Corralation between Haad Thip and Thai Stanley
Assuming the 90 days trading horizon Haad Thip is expected to generate 2.44 times less return on investment than Thai Stanley. But when comparing it to its historical volatility, Haad Thip Public is 1.12 times less risky than Thai Stanley. It trades about 0.03 of its potential returns per unit of risk. Thai Stanley Electric is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 17,531 in Thai Stanley Electric on September 12, 2024 and sell it today you would earn a total of 4,469 from holding Thai Stanley Electric or generate 25.49% 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. Thai Stanley Electric
Performance |
| Timeline |
| Haad Thip Public |
| Thai Stanley Electric |
Haad Thip and Thai Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and Thai Stanley
The main advantage of trading using opposite Haad Thip and Thai Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Thai Stanley 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 Thai Stanley will offset losses from the drop in Thai Stanley'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 |
| Thai Stanley vs. Hwa Fong Rubber | Thai Stanley vs. AAPICO Hitech Public | Thai Stanley vs. Haad Thip Public | Thai Stanley 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |