Correlation Between LH Financial and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both LH Financial and Thaifoods Group 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 LH Financial and Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LH Financial Group and Thaifoods Group Public, you can compare the effects of market volatilities on LH Financial and Thaifoods Group 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 LH Financial with a short position of Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Financial and Thaifoods Group.
Diversification Opportunities for LH Financial and Thaifoods Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LHFG and Thaifoods is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding LH Financial Group and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group Public and LH Financial 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 LH Financial Group are associated (or correlated) with Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of LH Financial i.e., LH Financial and Thaifoods Group go up and down completely randomly.
Pair Corralation between LH Financial and Thaifoods Group
Assuming the 90 days trading horizon LH Financial Group is expected to generate 0.32 times more return on investment than Thaifoods Group. However, LH Financial Group is 3.09 times less risky than Thaifoods Group. It trades about -0.04 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.22 per unit of risk. If you would invest 78.00 in LH Financial Group on October 31, 2024 and sell it today you would lose (1.00) from holding LH Financial Group or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Financial Group vs. Thaifoods Group Public
Performance |
| Timeline |
| LH Financial Group |
| Thaifoods Group Public |
LH Financial and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Financial and Thaifoods Group
The main advantage of trading using opposite LH Financial and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Financial position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| LH Financial vs. Quality Houses Public | LH Financial vs. Kiatnakin Phatra Bank | LH Financial vs. Land and Houses | LH Financial vs. TISCO Financial Group |
| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |