Correlation Between News Network and Internet Thailand
Can any of the company-specific risk be diversified away by investing in both News Network and Internet Thailand 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 News Network and Internet Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Network and Internet Thailand Public, you can compare the effects of market volatilities on News Network and Internet Thailand 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 News Network with a short position of Internet Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Network and Internet Thailand.
Diversification Opportunities for News Network and Internet Thailand
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between News and Internet is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding News Network and Internet Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand Public and News Network 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 News Network are associated (or correlated) with Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand Public has no effect on the direction of News Network i.e., News Network and Internet Thailand go up and down completely randomly.
Pair Corralation between News Network and Internet Thailand
Assuming the 90 days trading horizon News Network is expected to generate 2.84 times more return on investment than Internet Thailand. However, News Network is 2.84 times more volatile than Internet Thailand Public. It trades about 0.09 of its potential returns per unit of risk. Internet Thailand Public is currently generating about 0.19 per unit of risk. If you would invest 1.00 in News Network on August 29, 2024 and sell it today you would earn a total of 0.00 from holding News Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Network vs. Internet Thailand Public
Performance |
| Timeline |
| News Network |
| Internet Thailand Public |
News Network and Internet Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Network and Internet Thailand
The main advantage of trading using opposite News Network and Internet Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Network position performs unexpectedly, Internet Thailand 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 Internet Thailand will offset losses from the drop in Internet Thailand's long position.| News Network vs. Internet Thailand Public | News Network vs. Millcon Steel Public | News Network vs. Hydrotek Public | News Network vs. E for L |
| Internet Thailand vs. AP Public | Internet Thailand vs. Jasmine International Public | Internet Thailand vs. Asia Plus Group | Internet Thailand vs. Bangkok Aviation Fuel |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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