Correlation Between ThaiDex SET50 and WISE KTAM
Can any of the company-specific risk be diversified away by investing in both ThaiDex SET50 and WISE KTAM 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 WISE KTAM 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 WISE KTAM CSI, you can compare the effects of market volatilities on ThaiDex SET50 and WISE KTAM 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 WISE KTAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ThaiDex SET50 and WISE KTAM.
Diversification Opportunities for ThaiDex SET50 and WISE KTAM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ThaiDex and WISE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ThaiDex SET50 Exchange and WISE KTAM CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISE KTAM CSI 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 WISE KTAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISE KTAM CSI has no effect on the direction of ThaiDex SET50 i.e., ThaiDex SET50 and WISE KTAM go up and down completely randomly.
Pair Corralation between ThaiDex SET50 and WISE KTAM
If you would invest 634.00 in WISE KTAM CSI on August 24, 2024 and sell it today you would lose (11.00) from holding WISE KTAM CSI or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
ThaiDex SET50 Exchange vs. WISE KTAM CSI
Performance |
| Timeline |
| ThaiDex SET50 Exchange |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| WISE KTAM CSI |
ThaiDex SET50 and WISE KTAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ThaiDex SET50 and WISE KTAM
The main advantage of trading using opposite ThaiDex SET50 and WISE KTAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ThaiDex SET50 position performs unexpectedly, WISE KTAM 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 WISE KTAM will offset losses from the drop in WISE KTAM'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 |
| WISE KTAM vs. United Hero ETF | WISE KTAM vs. BCAP SET100 | WISE KTAM vs. KTAM Gold ETF | WISE KTAM vs. ThaiDEX SET High |
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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