Correlation Between IFS Capital and Haad Thip
Can any of the company-specific risk be diversified away by investing in both IFS Capital and Haad Thip 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 IFS Capital and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFS Capital Public and Haad Thip Public, you can compare the effects of market volatilities on IFS Capital and Haad Thip 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 IFS Capital with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFS Capital and Haad Thip.
Diversification Opportunities for IFS Capital and Haad Thip
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IFS and Haad is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding IFS Capital Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and IFS Capital 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 IFS Capital Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of IFS Capital i.e., IFS Capital and Haad Thip go up and down completely randomly.
Pair Corralation between IFS Capital and Haad Thip
Assuming the 90 days trading horizon IFS Capital Public is expected to generate 0.53 times more return on investment than Haad Thip. However, IFS Capital Public is 1.89 times less risky than Haad Thip. It trades about -0.09 of its potential returns per unit of risk. Haad Thip Public is currently generating about -0.13 per unit of risk. If you would invest 252.00 in IFS Capital Public on August 27, 2024 and sell it today you would lose (4.00) from holding IFS Capital Public or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IFS Capital Public vs. Haad Thip Public
Performance |
| Timeline |
| IFS Capital Public |
| Haad Thip Public |
IFS Capital and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFS Capital and Haad Thip
The main advantage of trading using opposite IFS Capital and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFS Capital position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| IFS Capital vs. Hydrogen Freehold Leasehold | IFS Capital vs. Halcyon Technology Public | IFS Capital vs. Peerapat Technology Public | IFS Capital vs. Golden Ventures Leasehold |
| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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