Correlation Between PINTHONG INDUSTRIAL and Thai Life
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL and Thai Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and Thai Life Insurance, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL with a short position of Thai Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Thai Life.
Diversification Opportunities for PINTHONG INDUSTRIAL and Thai Life
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PINTHONG and Thai is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK 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 PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK 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 PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Thai Life go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Thai Life
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL PARK is expected to generate 1.37 times more return on investment than Thai Life. However, PINTHONG INDUSTRIAL is 1.37 times more volatile than Thai Life Insurance. It trades about 0.06 of its potential returns per unit of risk. Thai Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 322.00 in PINTHONG INDUSTRIAL PARK on December 4, 2024 and sell it today you would earn a total of 283.00 from holding PINTHONG INDUSTRIAL PARK or generate 87.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Thai Life Insurance
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| Thai Life Insurance |
PINTHONG INDUSTRIAL and Thai Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and Thai Life
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Thai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL 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.| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
| Thai Life vs. Bangkok Life Assurance | Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. Muangthai Capital 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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