Correlation Between Internet Thailand and SiS Distribution
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and SiS Distribution 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 SiS Distribution 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 SiS Distribution Public, you can compare the effects of market volatilities on Internet Thailand and SiS Distribution 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 SiS Distribution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and SiS Distribution.
Diversification Opportunities for Internet Thailand and SiS Distribution
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Internet and SiS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and SiS Distribution Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiS Distribution 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 SiS Distribution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiS Distribution Public has no effect on the direction of Internet Thailand i.e., Internet Thailand and SiS Distribution go up and down completely randomly.
Pair Corralation between Internet Thailand and SiS Distribution
Assuming the 90 days trading horizon Internet Thailand Public is expected to generate 2.05 times more return on investment than SiS Distribution. However, Internet Thailand is 2.05 times more volatile than SiS Distribution Public. It trades about 0.19 of its potential returns per unit of risk. SiS Distribution Public is currently generating about 0.2 per unit of risk. If you would invest 424.00 in Internet Thailand Public on August 29, 2024 and sell it today you would earn a total of 141.00 from holding Internet Thailand Public or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Thailand Public vs. SiS Distribution Public
Performance |
| Timeline |
| Internet Thailand Public |
| SiS Distribution Public |
Internet Thailand and SiS Distribution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and SiS Distribution
The main advantage of trading using opposite Internet Thailand and SiS Distribution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, SiS Distribution 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 SiS Distribution will offset losses from the drop in SiS Distribution's long position.| Internet Thailand vs. AP Public | Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Asia Plus Group | Internet Thailand vs. Bangkok Aviation Fuel |
| SiS Distribution vs. AP Public | SiS Distribution vs. Jasmine International Public | SiS Distribution vs. Asia Plus Group | SiS Distribution vs. Bangkok Aviation Fuel |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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