Correlation Between Lohakit Metal and Thai Life
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal 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 Lohakit Metal and Thai Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and Thai Life Insurance, you can compare the effects of market volatilities on Lohakit Metal 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 Lohakit Metal with a short position of Thai Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Thai Life.
Diversification Opportunities for Lohakit Metal and Thai Life
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohakit and Thai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal i.e., Lohakit Metal and Thai Life go up and down completely randomly.
Pair Corralation between Lohakit Metal and Thai Life
Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.26 times more return on investment than Thai Life. However, Lohakit Metal Public is 3.82 times less risky than Thai Life. It trades about 0.0 of its potential returns per unit of risk. Thai Life Insurance is currently generating about -0.07 per unit of risk. If you would invest 376.00 in Lohakit Metal Public on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Lohakit Metal Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Thai Life Insurance
Performance |
| Timeline |
| Lohakit Metal Public |
| Thai Life Insurance |
Lohakit Metal and Thai Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Thai Life
The main advantage of trading using opposite Lohakit Metal and Thai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal 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.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. TRC Construction Public |
| Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. Muangthai Capital Public | Thai Life vs. The Erawan Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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