Correlation Between ThaiDex SET50 and ThaiDEX SET
Can any of the company-specific risk be diversified away by investing in both ThaiDex SET50 and ThaiDEX SET 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 ThaiDex SET50 and ThaiDEX SET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ThaiDex SET50 Exchange and ThaiDEX SET High, you can compare the effects of market volatilities on ThaiDex SET50 and ThaiDEX SET 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 ThaiDex SET50 with a short position of ThaiDEX SET. Check out your portfolio center. Please also check ongoing floating volatility patterns of ThaiDex SET50 and ThaiDEX SET.
Diversification Opportunities for ThaiDex SET50 and ThaiDEX SET
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ThaiDex and ThaiDEX is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ThaiDex SET50 Exchange and ThaiDEX SET High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDEX SET High and ThaiDex SET50 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 ThaiDex SET50 Exchange are associated (or correlated) with ThaiDEX SET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDEX SET High has no effect on the direction of ThaiDex SET50 i.e., ThaiDex SET50 and ThaiDEX SET go up and down completely randomly.
Pair Corralation between ThaiDex SET50 and ThaiDEX SET
Assuming the 90 days trading horizon ThaiDex SET50 is expected to generate 1.01 times less return on investment than ThaiDEX SET. In addition to that, ThaiDex SET50 is 1.0 times more volatile than ThaiDEX SET High. It trades about 0.04 of its total potential returns per unit of risk. ThaiDEX SET High is currently generating about 0.04 per unit of volatility. If you would invest 1,004 in ThaiDEX SET High on August 25, 2024 and sell it today you would earn a total of 85.00 from holding ThaiDEX SET High or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ThaiDex SET50 Exchange vs. ThaiDEX SET High
Performance |
| Timeline |
| ThaiDex SET50 Exchange |
| ThaiDEX SET High |
ThaiDex SET50 and ThaiDEX SET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ThaiDex SET50 and ThaiDEX SET
The main advantage of trading using opposite ThaiDex SET50 and ThaiDEX SET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ThaiDex SET50 position performs unexpectedly, ThaiDEX SET 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 ThaiDEX SET will offset losses from the drop in ThaiDEX SET's long position.| ThaiDex SET50 vs. United Hero ETF | ThaiDex SET50 vs. BCAP SET100 | ThaiDex SET50 vs. WISE KTAM CSI | ThaiDex SET50 vs. KTAM Gold ETF |
| ThaiDEX SET vs. United Hero ETF | ThaiDEX SET vs. BCAP SET100 | ThaiDEX SET vs. WISE KTAM CSI | ThaiDEX SET vs. KTAM Gold ETF |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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