Correlation Between Internet Thailand and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Superior Plus 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 Internet Thailand and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand PCL and Superior Plus Corp, you can compare the effects of market volatilities on Internet Thailand and Superior Plus 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 Internet Thailand with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Superior Plus.
Diversification Opportunities for Internet Thailand and Superior Plus
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Internet and Superior is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Internet Thailand 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 Internet Thailand PCL are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Internet Thailand i.e., Internet Thailand and Superior Plus go up and down completely randomly.
Pair Corralation between Internet Thailand and Superior Plus
Assuming the 90 days trading horizon Internet Thailand PCL is expected to under-perform the Superior Plus. In addition to that, Internet Thailand is 1.76 times more volatile than Superior Plus Corp. It trades about -0.04 of its total potential returns per unit of risk. Superior Plus Corp is currently generating about 0.01 per unit of volatility. If you would invest 414.00 in Superior Plus Corp on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Superior Plus Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand PCL vs. Superior Plus Corp
Performance |
| Timeline |
| Internet Thailand PCL |
| Superior Plus Corp |
Internet Thailand and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Superior Plus
The main advantage of trading using opposite Internet Thailand and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc |
| Superior Plus vs. Internet Thailand PCL | Superior Plus vs. SPORTING | Superior Plus vs. Spirent Communications plc | Superior Plus vs. Transport International Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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