Correlation Between Karmarts Public and Thai Ha
Can any of the company-specific risk be diversified away by investing in both Karmarts Public and Thai Ha 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 Karmarts Public and Thai Ha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karmarts Public and Thai Ha Public, you can compare the effects of market volatilities on Karmarts Public and Thai Ha 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 Karmarts Public with a short position of Thai Ha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karmarts Public and Thai Ha.
Diversification Opportunities for Karmarts Public and Thai Ha
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Karmarts and Thai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Karmarts Public and Thai Ha Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Ha Public and Karmarts Public 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 Karmarts Public are associated (or correlated) with Thai Ha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Ha Public has no effect on the direction of Karmarts Public i.e., Karmarts Public and Thai Ha go up and down completely randomly.
Pair Corralation between Karmarts Public and Thai Ha
Assuming the 90 days trading horizon Karmarts Public is expected to generate 1.1 times more return on investment than Thai Ha. However, Karmarts Public is 1.1 times more volatile than Thai Ha Public. It trades about 0.02 of its potential returns per unit of risk. Thai Ha Public is currently generating about -0.03 per unit of risk. If you would invest 1,089 in Karmarts Public on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Karmarts Public or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karmarts Public vs. Thai Ha Public
Performance |
| Timeline |
| Karmarts Public |
| Thai Ha Public |
Karmarts Public and Thai Ha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karmarts Public and Thai Ha
The main advantage of trading using opposite Karmarts Public and Thai Ha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karmarts Public position performs unexpectedly, Thai Ha 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 Ha will offset losses from the drop in Thai Ha's long position.| Karmarts Public vs. Beauty Community Public | Karmarts Public vs. Jay Mart Public | Karmarts Public vs. MC Group Public | Karmarts Public vs. Mega Lifesciences Public |
| Thai Ha vs. Thai Union Group | Thai Ha vs. Thai Union Group | Thai Ha vs. Thai President Foods | Thai Ha vs. Thai Vegetable Oil |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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