Correlation Between Internet Thailand and Interlink Telecom
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Interlink Telecom 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 Telecom 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 Telecom Public, you can compare the effects of market volatilities on Internet Thailand and Interlink Telecom 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 Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Interlink Telecom.
Diversification Opportunities for Internet Thailand and Interlink Telecom
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Internet and Interlink is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public 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 Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Internet Thailand i.e., Internet Thailand and Interlink Telecom go up and down completely randomly.
Pair Corralation between Internet Thailand and Interlink Telecom
Assuming the 90 days trading horizon Internet Thailand Public is expected to generate 1.04 times more return on investment than Interlink Telecom. However, Internet Thailand is 1.04 times more volatile than Interlink Telecom Public. It trades about 0.06 of its potential returns per unit of risk. Interlink Telecom Public is currently generating about 0.0 per unit of risk. If you would invest 436.00 in Internet Thailand Public on September 4, 2024 and sell it today you would earn a total of 189.00 from holding Internet Thailand Public or generate 43.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. Interlink Telecom Public
Performance |
| Timeline |
| Internet Thailand Public |
| Interlink Telecom Public |
Internet Thailand and Interlink Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Interlink Telecom
The main advantage of trading using opposite Internet Thailand and Interlink Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Interlink Telecom 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 Telecom will offset losses from the drop in Interlink Telecom's long position.| Internet Thailand vs. KCE Electronics Public | Internet Thailand vs. Land and Houses | Internet Thailand vs. The Siam Cement | Internet Thailand vs. Bangkok Bank Public |
| Interlink Telecom vs. Interlink Communication Public | Interlink Telecom vs. Jay Mart Public | Interlink Telecom vs. Internet Thailand Public | Interlink Telecom vs. Jasmine International 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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