Correlation Between Quality Houses and Dusit Thani
Can any of the company-specific risk be diversified away by investing in both Quality Houses and Dusit Thani 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 Quality Houses and Dusit Thani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Houses Property and Dusit Thani Freehold, you can compare the effects of market volatilities on Quality Houses and Dusit Thani 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 Quality Houses with a short position of Dusit Thani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and Dusit Thani.
Diversification Opportunities for Quality Houses and Dusit Thani
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Quality and Dusit is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Property and Dusit Thani Freehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dusit Thani Freehold and Quality Houses 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 Quality Houses Property are associated (or correlated) with Dusit Thani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dusit Thani Freehold has no effect on the direction of Quality Houses i.e., Quality Houses and Dusit Thani go up and down completely randomly.
Pair Corralation between Quality Houses and Dusit Thani
Assuming the 90 days trading horizon Quality Houses Property is expected to under-perform the Dusit Thani. But the fund apears to be less risky and, when comparing its historical volatility, Quality Houses Property is 1.16 times less risky than Dusit Thani. The fund trades about -0.26 of its potential returns per unit of risk. The Dusit Thani Freehold is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Dusit Thani Freehold on September 1, 2024 and sell it today you would lose (14.00) from holding Dusit Thani Freehold or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Quality Houses Property vs. Dusit Thani Freehold
Performance |
| Timeline |
| Quality Houses Property |
| Dusit Thani Freehold |
Quality Houses and Dusit Thani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and Dusit Thani
The main advantage of trading using opposite Quality Houses and Dusit Thani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses position performs unexpectedly, Dusit Thani 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 Dusit Thani will offset losses from the drop in Dusit Thani's long position.| Quality Houses vs. Quality Houses Hotel | Quality Houses vs. LH Shopping Centers | Quality Houses vs. LH Hotel Leasehold | Quality Houses vs. Future Park Leasehold |
| Dusit Thani vs. CPN Retail Growth | Dusit Thani vs. Grande Hospitality Real | Dusit Thani vs. The Erawan Group | Dusit Thani vs. Impact Growth REIT |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets |