Correlation Between Steel Public and Haad Thip
Can any of the company-specific risk be diversified away by investing in both Steel Public and Haad Thip 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 Steel Public and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Steel Public and Haad Thip Public, you can compare the effects of market volatilities on Steel Public and Haad Thip 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 Steel Public with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Public and Haad Thip.
Diversification Opportunities for Steel Public and Haad Thip
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steel and Haad is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding The Steel Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and Steel Public 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 The Steel Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of Steel Public i.e., Steel Public and Haad Thip go up and down completely randomly.
Pair Corralation between Steel Public and Haad Thip
Assuming the 90 days trading horizon The Steel Public is expected to generate 70.49 times more return on investment than Haad Thip. However, Steel Public is 70.49 times more volatile than Haad Thip Public. It trades about 0.08 of its potential returns per unit of risk. Haad Thip Public is currently generating about 0.03 per unit of risk. If you would invest 102.00 in The Steel Public on September 1, 2024 and sell it today you would lose (26.00) from holding The Steel Public or give up 25.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Steel Public vs. Haad Thip Public
Performance |
| Timeline |
| Steel Public |
| Haad Thip Public |
Steel Public and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Public and Haad Thip
The main advantage of trading using opposite Steel Public and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Public position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| Steel Public vs. TMT Steel Public | Steel Public vs. Tycoons Worldwide Group | Steel Public vs. Thai German Products Public | Steel Public vs. Siam Steel Service |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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