Correlation Between Internet Thailand and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Interlink Communication 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 Interlink Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand Public and Interlink Communication Public, you can compare the effects of market volatilities on Internet Thailand and Interlink Communication 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 Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Interlink Communication.
Diversification Opportunities for Internet Thailand and Interlink Communication
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and Interlink is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication 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 Public are associated (or correlated) with Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of Internet Thailand i.e., Internet Thailand and Interlink Communication go up and down completely randomly.
Pair Corralation between Internet Thailand and Interlink Communication
Assuming the 90 days trading horizon Internet Thailand Public is expected to generate 4.28 times more return on investment than Interlink Communication. However, Internet Thailand is 4.28 times more volatile than Interlink Communication Public. It trades about 0.17 of its potential returns per unit of risk. Interlink Communication Public is currently generating about -0.13 per unit of risk. If you would invest 454.00 in Internet Thailand Public on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Internet Thailand Public or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. Interlink Communication Public
Performance |
| Timeline |
| Internet Thailand Public |
| Interlink Communication |
Internet Thailand and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Interlink Communication
The main advantage of trading using opposite Internet Thailand and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication's long position.| Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Hana Microelectronics Public | Internet Thailand vs. AP Public | Internet Thailand vs. KCE Electronics Public |
| Interlink Communication vs. KCE Electronics Public | Interlink Communication vs. Land and Houses | Interlink Communication vs. Delta Electronics Public | Interlink Communication vs. The Siam Cement |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |