Correlation Between ICC International and Thonburi Medical
Can any of the company-specific risk be diversified away by investing in both ICC International and Thonburi Medical 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 ICC International and Thonburi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC International Public and Thonburi Medical Centre, you can compare the effects of market volatilities on ICC International and Thonburi Medical 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 ICC International with a short position of Thonburi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC International and Thonburi Medical.
Diversification Opportunities for ICC International and Thonburi Medical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICC and Thonburi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ICC International Public and Thonburi Medical Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thonburi Medical Centre and ICC International 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 ICC International Public are associated (or correlated) with Thonburi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thonburi Medical Centre has no effect on the direction of ICC International i.e., ICC International and Thonburi Medical go up and down completely randomly.
Pair Corralation between ICC International and Thonburi Medical
Assuming the 90 days trading horizon ICC International is expected to generate 1.02 times less return on investment than Thonburi Medical. In addition to that, ICC International is 1.0 times more volatile than Thonburi Medical Centre. It trades about 0.08 of its total potential returns per unit of risk. Thonburi Medical Centre is currently generating about 0.08 per unit of volatility. If you would invest 9,350 in Thonburi Medical Centre on September 2, 2024 and sell it today you would earn a total of 225.00 from holding Thonburi Medical Centre or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
ICC International Public vs. Thonburi Medical Centre
Performance |
| Timeline |
| ICC International Public |
| Thonburi Medical Centre |
ICC International and Thonburi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC International and Thonburi Medical
The main advantage of trading using opposite ICC International and Thonburi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC International position performs unexpectedly, Thonburi Medical 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 Thonburi Medical will offset losses from the drop in Thonburi Medical's long position.| ICC International vs. Hana Microelectronics Public | ICC International vs. Hwa Fong Rubber | ICC International vs. Goodyear Public | ICC International vs. BEC World Public |
| Thonburi Medical vs. AP Public | Thonburi Medical vs. Advanced Information Technology | Thonburi Medical vs. AJ Plast Public | Thonburi Medical vs. Berli Jucker 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |