Correlation Between Internet Thailand and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Reinsurance Group 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 Reinsurance Group 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 Reinsurance Group of, you can compare the effects of market volatilities on Internet Thailand and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Reinsurance Group.
Diversification Opportunities for Internet Thailand and Reinsurance Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Internet and Reinsurance is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Internet Thailand i.e., Internet Thailand and Reinsurance Group go up and down completely randomly.
Pair Corralation between Internet Thailand and Reinsurance Group
Assuming the 90 days trading horizon Internet Thailand PCL is expected to generate 2.3 times more return on investment than Reinsurance Group. However, Internet Thailand is 2.3 times more volatile than Reinsurance Group of. It trades about 0.32 of its potential returns per unit of risk. Reinsurance Group of is currently generating about 0.2 per unit of risk. If you would invest 11.00 in Internet Thailand PCL on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Internet Thailand PCL or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand PCL vs. Reinsurance Group of
Performance |
| Timeline |
| Internet Thailand PCL |
| Reinsurance Group |
Internet Thailand and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Reinsurance Group
The main advantage of trading using opposite Internet Thailand and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc | Internet Thailand vs. Apple Inc |
| Reinsurance Group vs. Superior Plus Corp | Reinsurance Group vs. NMI Holdings | Reinsurance Group vs. SIVERS SEMICONDUCTORS AB | Reinsurance Group vs. Talanx AG |
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.
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