Correlation Between Land and Intouch Holdings
Can any of the company-specific risk be diversified away by investing in both Land and Intouch Holdings 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 Land and Intouch Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land and Houses and Intouch Holdings Public, you can compare the effects of market volatilities on Land and Intouch Holdings 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 Land with a short position of Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land and Intouch Holdings.
Diversification Opportunities for Land and Intouch Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Land and Intouch is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Land and Houses and Intouch Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Holdings Public and Land 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 Land and Houses are associated (or correlated) with Intouch Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Holdings Public has no effect on the direction of Land i.e., Land and Intouch Holdings go up and down completely randomly.
Pair Corralation between Land and Intouch Holdings
Assuming the 90 days horizon Land and Houses is expected to under-perform the Intouch Holdings. In addition to that, Land is 1.03 times more volatile than Intouch Holdings Public. It trades about -0.12 of its total potential returns per unit of risk. Intouch Holdings Public is currently generating about 0.08 per unit of volatility. If you would invest 6,961 in Intouch Holdings Public on November 9, 2024 and sell it today you would earn a total of 2,539 from holding Intouch Holdings Public or generate 36.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land and Houses vs. Intouch Holdings Public
Performance |
| Timeline |
| Land and Houses |
| Intouch Holdings Public |
Land and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land and Intouch Holdings
The main advantage of trading using opposite Land and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land position performs unexpectedly, Intouch Holdings 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 Intouch Holdings will offset losses from the drop in Intouch Holdings' long position.The idea behind Land and Houses and Intouch Holdings Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PTT Global Chemical | Intouch Holdings vs. PTT Public | Intouch Holdings vs. CP ALL Public |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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