Correlation Between Interlink Communication and Thaicom Public
Can any of the company-specific risk be diversified away by investing in both Interlink Communication and Thaicom Public 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 Interlink Communication and Thaicom Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlink Communication Public and Thaicom Public, you can compare the effects of market volatilities on Interlink Communication and Thaicom Public 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 Interlink Communication with a short position of Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Communication and Thaicom Public.
Diversification Opportunities for Interlink Communication and Thaicom Public
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Interlink and Thaicom is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Communication Public and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom Public and Interlink Communication 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 Interlink Communication Public are associated (or correlated) with Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of Interlink Communication i.e., Interlink Communication and Thaicom Public go up and down completely randomly.
Pair Corralation between Interlink Communication and Thaicom Public
Assuming the 90 days trading horizon Interlink Communication Public is expected to under-perform the Thaicom Public. But the stock apears to be less risky and, when comparing its historical volatility, Interlink Communication Public is 1.45 times less risky than Thaicom Public. The stock trades about -0.07 of its potential returns per unit of risk. The Thaicom Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,370 in Thaicom Public on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Thaicom Public or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlink Communication Public vs. Thaicom Public
Performance |
| Timeline |
| Interlink Communication |
| Thaicom Public |
Interlink Communication and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Communication and Thaicom Public
The main advantage of trading using opposite Interlink Communication and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Communication position performs unexpectedly, Thaicom Public 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 Thaicom Public will offset losses from the drop in Thaicom Public's long position.The idea behind Interlink Communication Public and Thaicom Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Thaicom Public vs. Synnex Public | Thaicom Public vs. SVI Public | Thaicom Public vs. Interlink Communication Public | Thaicom Public vs. The Erawan Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |