Correlation Between Thai Reinsurance and Mida Leasing
Can any of the company-specific risk be diversified away by investing in both Thai Reinsurance and Mida Leasing 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 Thai Reinsurance and Mida Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Reinsurance Public and Mida Leasing Public, you can compare the effects of market volatilities on Thai Reinsurance and Mida Leasing 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 Thai Reinsurance with a short position of Mida Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Reinsurance and Mida Leasing.
Diversification Opportunities for Thai Reinsurance and Mida Leasing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Mida is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Reinsurance Public and Mida Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mida Leasing Public and Thai Reinsurance 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 Thai Reinsurance Public are associated (or correlated) with Mida Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mida Leasing Public has no effect on the direction of Thai Reinsurance i.e., Thai Reinsurance and Mida Leasing go up and down completely randomly.
Pair Corralation between Thai Reinsurance and Mida Leasing
If you would invest 50.00 in Mida Leasing Public on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Mida Leasing Public or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Thai Reinsurance Public vs. Mida Leasing Public
Performance |
| Timeline |
| Thai Reinsurance Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Mida Leasing Public |
Thai Reinsurance and Mida Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Reinsurance and Mida Leasing
The main advantage of trading using opposite Thai Reinsurance and Mida Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Reinsurance position performs unexpectedly, Mida Leasing 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 Mida Leasing will offset losses from the drop in Mida Leasing's long position.| Thai Reinsurance vs. Hana Microelectronics Public | Thai Reinsurance vs. Ratchthani Leasing Public | Thai Reinsurance vs. Siri Prime Office | Thai Reinsurance vs. Thai Vegetable Oil |
| Mida Leasing vs. KGI Securities Public | Mida Leasing vs. Krungthai Car Rent | Mida Leasing vs. Eastern Commercial Leasing | Mida Leasing vs. JMT Network Services |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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