Correlation Between Intouch Holdings and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and Thoresen Thai 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 Intouch Holdings and Thoresen Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and Thoresen Thai Agencies, you can compare the effects of market volatilities on Intouch Holdings and Thoresen Thai 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 Intouch Holdings with a short position of Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and Thoresen Thai.
Diversification Opportunities for Intouch Holdings and Thoresen Thai
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intouch and Thoresen is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and Thoresen Thai go up and down completely randomly.
Pair Corralation between Intouch Holdings and Thoresen Thai
Assuming the 90 days trading horizon Intouch Holdings Public is expected to generate 0.49 times more return on investment than Thoresen Thai. However, Intouch Holdings Public is 2.04 times less risky than Thoresen Thai. It trades about 0.09 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about 0.02 per unit of risk. If you would invest 256.00 in Intouch Holdings Public on September 19, 2024 and sell it today you would earn a total of 8.00 from holding Intouch Holdings Public or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. Thoresen Thai Agencies
Performance |
| Timeline |
| Intouch Holdings Public |
| Thoresen Thai Agencies |
Intouch Holdings and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and Thoresen Thai
The main advantage of trading using opposite Intouch Holdings and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai's long position.| Intouch Holdings vs. Superior Plus Corp | Intouch Holdings vs. SIVERS SEMICONDUCTORS AB | Intouch Holdings vs. Norsk Hydro ASA | Intouch Holdings vs. Reliance Steel Aluminum |
| Thoresen Thai vs. THAI BEVERAGE | Thoresen Thai vs. PARKEN Sport Entertainment | Thoresen Thai vs. PT Global Mediacom | Thoresen Thai vs. LG Display Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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