Correlation Between Thai Reinsurance and Muang Thai
Can any of the company-specific risk be diversified away by investing in both Thai Reinsurance and Muang Thai 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 Muang Thai 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 Muang Thai Insurance, you can compare the effects of market volatilities on Thai Reinsurance and Muang Thai 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 Muang Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Reinsurance and Muang Thai.
Diversification Opportunities for Thai Reinsurance and Muang Thai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Muang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Reinsurance Public and Muang Thai Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muang Thai Insurance 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 Muang Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muang Thai Insurance has no effect on the direction of Thai Reinsurance i.e., Thai Reinsurance and Muang Thai go up and down completely randomly.
Pair Corralation between Thai Reinsurance and Muang Thai
If you would invest (100.00) in Thai Reinsurance Public on September 14, 2024 and sell it today you would earn a total of 100.00 from holding Thai Reinsurance Public or generate -100.0% 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. Muang Thai Insurance
Performance |
| Timeline |
| Thai Reinsurance Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Muang Thai Insurance |
Thai Reinsurance and Muang Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Reinsurance and Muang Thai
The main advantage of trading using opposite Thai Reinsurance and Muang Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Reinsurance position performs unexpectedly, Muang Thai 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 Muang Thai will offset losses from the drop in Muang Thai's long position.| Thai Reinsurance vs. Thaire Life Assurance | Thai Reinsurance vs. Hana Microelectronics Public | Thai Reinsurance vs. Ratchthani Leasing Public | Thai Reinsurance vs. Siri Prime Office |
| Muang Thai vs. Bangkok Life Assurance | Muang Thai vs. Karmarts Public | Muang Thai vs. Kang Yong Electric | Muang Thai vs. Kiatnakin Phatra Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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