Correlation Between Internet Thailand and NCL International
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and NCL International 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 NCL International 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 NCL International Logistics, you can compare the effects of market volatilities on Internet Thailand and NCL International 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 NCL International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and NCL International.
Diversification Opportunities for Internet Thailand and NCL International
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Internet and NCL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and NCL International Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCL International 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 NCL International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCL International has no effect on the direction of Internet Thailand i.e., Internet Thailand and NCL International go up and down completely randomly.
Pair Corralation between Internet Thailand and NCL International
Assuming the 90 days trading horizon Internet Thailand is expected to generate 28.59 times less return on investment than NCL International. But when comparing it to its historical volatility, Internet Thailand Public is 19.05 times less risky than NCL International. It trades about 0.02 of its potential returns per unit of risk. NCL International Logistics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 338.00 in NCL International Logistics on August 31, 2024 and sell it today you would lose (289.00) from holding NCL International Logistics or give up 85.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. NCL International Logistics
Performance |
| Timeline |
| Internet Thailand Public |
| NCL International |
Internet Thailand and NCL International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and NCL International
The main advantage of trading using opposite Internet Thailand and NCL International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, NCL International 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 NCL International will offset losses from the drop in NCL International's long position.| Internet Thailand vs. AP Public | Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Asia Plus Group | Internet Thailand vs. Bangchak Public |
| NCL International vs. Kingsmen CMTI Public | NCL International vs. International Research | NCL International vs. Masterkool International Public | NCL International vs. News Network |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |