Correlation Between Internet Thailand and WINMARK
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and WINMARK 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 WINMARK 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 WINMARK, you can compare the effects of market volatilities on Internet Thailand and WINMARK 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 WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and WINMARK.
Diversification Opportunities for Internet Thailand and WINMARK
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Internet and WINMARK is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK 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 WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of Internet Thailand i.e., Internet Thailand and WINMARK go up and down completely randomly.
Pair Corralation between Internet Thailand and WINMARK
Assuming the 90 days trading horizon Internet Thailand PCL is expected to generate 3.22 times more return on investment than WINMARK. However, Internet Thailand is 3.22 times more volatile than WINMARK. It trades about 0.27 of its potential returns per unit of risk. WINMARK is currently generating about 0.28 per unit of risk. If you would invest 11.00 in Internet Thailand PCL on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Internet Thailand PCL or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand PCL vs. WINMARK
Performance |
| Timeline |
| Internet Thailand PCL |
| WINMARK |
Internet Thailand and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and WINMARK
The main advantage of trading using opposite Internet Thailand and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| Internet Thailand vs. Lion Biotechnologies | Internet Thailand vs. Global Ship Lease | Internet Thailand vs. PKSHA TECHNOLOGY INC | Internet Thailand vs. Air Lease |
| WINMARK vs. Magnachip Semiconductor | WINMARK vs. Internet Thailand PCL | WINMARK vs. KRISPY KREME DL 01 | WINMARK vs. Entravision Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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