Correlation Between Thaifoods Group and LH Financial
Can any of the company-specific risk be diversified away by investing in both Thaifoods Group and LH Financial 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 Thaifoods Group and LH Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thaifoods Group Public and LH Financial Group, you can compare the effects of market volatilities on Thaifoods Group and LH Financial 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 Thaifoods Group with a short position of LH Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thaifoods Group and LH Financial.
Diversification Opportunities for Thaifoods Group and LH Financial
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thaifoods and LHFG is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thaifoods Group Public and LH Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Financial Group and Thaifoods Group 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 Thaifoods Group Public are associated (or correlated) with LH Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Financial Group has no effect on the direction of Thaifoods Group i.e., Thaifoods Group and LH Financial go up and down completely randomly.
Pair Corralation between Thaifoods Group and LH Financial
Assuming the 90 days trading horizon Thaifoods Group Public is expected to under-perform the LH Financial. In addition to that, Thaifoods Group is 3.09 times more volatile than LH Financial Group. It trades about -0.22 of its total potential returns per unit of risk. LH Financial Group is currently generating about -0.04 per unit of volatility. If you would invest 78.00 in LH Financial Group on October 31, 2024 and sell it today you would lose (1.00) from holding LH Financial Group or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thaifoods Group Public vs. LH Financial Group
Performance |
| Timeline |
| Thaifoods Group Public |
| LH Financial Group |
Thaifoods Group and LH Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thaifoods Group and LH Financial
The main advantage of trading using opposite Thaifoods Group and LH Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thaifoods Group position performs unexpectedly, LH Financial 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 LH Financial will offset losses from the drop in LH Financial's long position.| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom Public |
| LH Financial vs. Quality Houses Public | LH Financial vs. Kiatnakin Phatra Bank | LH Financial vs. Land and Houses | LH Financial vs. TISCO Financial Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |