Correlation Between Lohakit Metal and Thai Rung
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Thai Rung 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 Rung 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 Rung Union, you can compare the effects of market volatilities on Lohakit Metal and Thai Rung 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 Rung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Thai Rung.
Diversification Opportunities for Lohakit Metal and Thai Rung
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lohakit and Thai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and Thai Rung Union in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rung Union 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 Rung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rung Union has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and Thai Rung go up and down completely randomly.
Pair Corralation between Lohakit Metal and Thai Rung
Assuming the 90 days trading horizon Lohakit Metal Public is expected to under-perform the Thai Rung. But the stock apears to be less risky and, when comparing its historical volatility, Lohakit Metal Public is 67.73 times less risky than Thai Rung. The stock trades about 0.0 of its potential returns per unit of risk. The Thai Rung Union is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Thai Rung Union on September 3, 2024 and sell it today you would lose (7.00) from holding Thai Rung Union or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Thai Rung Union
Performance |
| Timeline |
| Lohakit Metal Public |
| Thai Rung Union |
Lohakit Metal and Thai Rung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Thai Rung
The main advantage of trading using opposite Lohakit Metal and Thai Rung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, Thai Rung 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 Rung will offset losses from the drop in Thai Rung's long position.| Lohakit Metal vs. Asia Aviation Public | Lohakit Metal vs. Bangkok Dusit Medical | Lohakit Metal vs. Bangkok Expressway and | Lohakit Metal vs. Airports of Thailand |
| Thai Rung vs. Central Pattana Public | Thai Rung vs. CP ALL Public | Thai Rung vs. Bangkok Dusit Medical | Thai Rung vs. Airports of Thailand |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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