Correlation Between Internet Thailand and Metro Systems
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Metro Systems 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 Metro Systems 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 Metro Systems, you can compare the effects of market volatilities on Internet Thailand and Metro Systems 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 Metro Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Metro Systems.
Diversification Opportunities for Internet Thailand and Metro Systems
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Internet and Metro is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Metro Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Systems 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 Metro Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Systems has no effect on the direction of Internet Thailand i.e., Internet Thailand and Metro Systems go up and down completely randomly.
Pair Corralation between Internet Thailand and Metro Systems
Assuming the 90 days trading horizon Internet Thailand is expected to generate 42.17 times less return on investment than Metro Systems. But when comparing it to its historical volatility, Internet Thailand Public is 16.95 times less risky than Metro Systems. It trades about 0.02 of its potential returns per unit of risk. Metro Systems is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Metro Systems on November 19, 2024 and sell it today you would lose (29.00) from holding Metro Systems or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. Metro Systems
Performance |
| Timeline |
| Internet Thailand Public |
| Metro Systems |
Internet Thailand and Metro Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Metro Systems
The main advantage of trading using opposite Internet Thailand and Metro Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Metro Systems 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 Metro Systems will offset losses from the drop in Metro Systems' 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 |
| Metro Systems vs. MFEC PCL | Metro Systems vs. Internet Thailand Public | Metro Systems vs. Hana Microelectronics Public | Metro Systems vs. SiS Distribution 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |