Correlation Between Internet Thailand and Thai Solar
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Thai Solar 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 Thai Solar 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 Thai Solar Energy, you can compare the effects of market volatilities on Internet Thailand and Thai Solar 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 Thai Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Thai Solar.
Diversification Opportunities for Internet Thailand and Thai Solar
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Internet and Thai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Thai Solar Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Solar Energy 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 Thai Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Solar Energy has no effect on the direction of Internet Thailand i.e., Internet Thailand and Thai Solar go up and down completely randomly.
Pair Corralation between Internet Thailand and Thai Solar
Assuming the 90 days trading horizon Internet Thailand is expected to generate 28.67 times less return on investment than Thai Solar. But when comparing it to its historical volatility, Internet Thailand Public is 20.31 times less risky than Thai Solar. It trades about 0.07 of its potential returns per unit of risk. Thai Solar Energy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Thai Solar Energy on November 2, 2024 and sell it today you would earn a total of 70.00 from holding Thai Solar Energy or generate 9.223372036854776E16% 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. Thai Solar Energy
Performance |
| Timeline |
| Internet Thailand Public |
| Thai Solar Energy |
Internet Thailand and Thai Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and Thai Solar
The main advantage of trading using opposite Internet Thailand and Thai Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, Thai Solar 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 Thai Solar will offset losses from the drop in Thai Solar'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 |
| Thai Solar vs. BCPG Public | Thai Solar vs. CK Power Public | Thai Solar vs. TPI Polene Power | Thai Solar vs. Earth Tech Environment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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