Correlation Between Laguna Resorts and Thonburi Medical
Can any of the company-specific risk be diversified away by investing in both Laguna Resorts and Thonburi Medical 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 Laguna Resorts and Thonburi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laguna Resorts Hotels and Thonburi Medical Centre, you can compare the effects of market volatilities on Laguna Resorts and Thonburi Medical 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 Laguna Resorts with a short position of Thonburi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laguna Resorts and Thonburi Medical.
Diversification Opportunities for Laguna Resorts and Thonburi Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Laguna and Thonburi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Laguna Resorts Hotels and Thonburi Medical Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thonburi Medical Centre and Laguna Resorts 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 Laguna Resorts Hotels are associated (or correlated) with Thonburi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thonburi Medical Centre has no effect on the direction of Laguna Resorts i.e., Laguna Resorts and Thonburi Medical go up and down completely randomly.
Pair Corralation between Laguna Resorts and Thonburi Medical
Assuming the 90 days trading horizon Laguna Resorts is expected to generate 1.01 times less return on investment than Thonburi Medical. In addition to that, Laguna Resorts is 1.0 times more volatile than Thonburi Medical Centre. It trades about 0.05 of its total potential returns per unit of risk. Thonburi Medical Centre is currently generating about 0.05 per unit of volatility. If you would invest 9,760 in Thonburi Medical Centre on August 31, 2024 and sell it today you would lose (210.00) from holding Thonburi Medical Centre or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laguna Resorts Hotels vs. Thonburi Medical Centre
Performance |
| Timeline |
| Laguna Resorts Hotels |
| Thonburi Medical Centre |
Laguna Resorts and Thonburi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laguna Resorts and Thonburi Medical
The main advantage of trading using opposite Laguna Resorts and Thonburi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laguna Resorts position performs unexpectedly, Thonburi Medical 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 Thonburi Medical will offset losses from the drop in Thonburi Medical's long position.| Laguna Resorts vs. TRC Construction Public | Laguna Resorts vs. Bangkok Expressway and | Laguna Resorts vs. Lohakit Metal Public | Laguna Resorts vs. Gunkul Engineering Public |
| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |