Correlation Between Internet Thailand and LION ONE
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and LION ONE 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 LION ONE 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 LION ONE METALS, you can compare the effects of market volatilities on Internet Thailand and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and LION ONE.
Diversification Opportunities for Internet Thailand and LION ONE
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and LION is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of Internet Thailand i.e., Internet Thailand and LION ONE go up and down completely randomly.
Pair Corralation between Internet Thailand and LION ONE
Assuming the 90 days trading horizon Internet Thailand PCL is expected to generate 2.13 times more return on investment than LION ONE. However, Internet Thailand is 2.13 times more volatile than LION ONE METALS. It trades about 0.27 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.05 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand PCL vs. LION ONE METALS
Performance |
| Timeline |
| Internet Thailand PCL |
| LION ONE METALS |
Internet Thailand and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and LION ONE
The main advantage of trading using opposite Internet Thailand and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE'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 |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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