Correlation Between Ingress Industrial and Thai Life
Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and Thai Life 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 Ingress Industrial and Thai Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingress Industrial Public and Thai Life Insurance, you can compare the effects of market volatilities on Ingress Industrial and Thai Life 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 Ingress Industrial with a short position of Thai Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and Thai Life.
Diversification Opportunities for Ingress Industrial and Thai Life
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingress and Thai is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and Thai Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Life Insurance and Ingress Industrial 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 Ingress Industrial Public are associated (or correlated) with Thai Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Life Insurance has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and Thai Life go up and down completely randomly.
Pair Corralation between Ingress Industrial and Thai Life
Assuming the 90 days trading horizon Ingress Industrial Public is expected to generate 29.33 times more return on investment than Thai Life. However, Ingress Industrial is 29.33 times more volatile than Thai Life Insurance. It trades about 0.05 of its potential returns per unit of risk. Thai Life Insurance is currently generating about 0.03 per unit of risk. If you would invest 48.00 in Ingress Industrial Public on September 14, 2024 and sell it today you would lose (15.00) from holding Ingress Industrial Public or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingress Industrial Public vs. Thai Life Insurance
Performance |
| Timeline |
| Ingress Industrial Public |
| Thai Life Insurance |
Ingress Industrial and Thai Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingress Industrial and Thai Life
The main advantage of trading using opposite Ingress Industrial and Thai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, Thai Life 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 Life will offset losses from the drop in Thai Life's long position.| Ingress Industrial vs. Hwa Fong Rubber | Ingress Industrial vs. AAPICO Hitech Public | Ingress Industrial vs. Haad Thip Public | Ingress Industrial vs. Italian Thai Development Public |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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