Correlation Between Tong Hua and Thai Reinsurance
Can any of the company-specific risk be diversified away by investing in both Tong Hua and Thai Reinsurance 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 Tong Hua and Thai Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tong Hua Holding and Thai Reinsurance Public, you can compare the effects of market volatilities on Tong Hua and Thai Reinsurance 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 Tong Hua with a short position of Thai Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Hua and Thai Reinsurance.
Diversification Opportunities for Tong Hua and Thai Reinsurance
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tong and Thai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tong Hua Holding and Thai Reinsurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Reinsurance Public and Tong Hua 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 Tong Hua Holding are associated (or correlated) with Thai Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Reinsurance Public has no effect on the direction of Tong Hua i.e., Tong Hua and Thai Reinsurance go up and down completely randomly.
Pair Corralation between Tong Hua and Thai Reinsurance
Assuming the 90 days horizon Tong Hua Holding is expected to under-perform the Thai Reinsurance. In addition to that, Tong Hua is 2.05 times more volatile than Thai Reinsurance Public. It trades about -0.39 of its total potential returns per unit of risk. Thai Reinsurance Public is currently generating about -0.26 per unit of volatility. If you would invest 63.00 in Thai Reinsurance Public on August 29, 2024 and sell it today you would lose (6.00) from holding Thai Reinsurance Public or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Hua Holding vs. Thai Reinsurance Public
Performance |
| Timeline |
| Tong Hua Holding |
| Thai Reinsurance Public |
Tong Hua and Thai Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Hua and Thai Reinsurance
The main advantage of trading using opposite Tong Hua and Thai Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Hua position performs unexpectedly, Thai Reinsurance 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 Thai Reinsurance will offset losses from the drop in Thai Reinsurance's long position.| Tong Hua vs. Synnex Public | Tong Hua vs. SVI Public | Tong Hua vs. Interlink Communication Public | Tong Hua vs. SCG PACKAGING PCL NVDR |
| Thai Reinsurance vs. Thaire Life Assurance | Thai Reinsurance vs. Hana Microelectronics Public | Thai Reinsurance vs. Ratchthani Leasing Public | Thai Reinsurance vs. Siri Prime Office |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |