Correlation Between Thai Life and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both Thai Life and Stock Exchange 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 Life and Stock Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Life Insurance and Stock Exchange Of, you can compare the effects of market volatilities on Thai Life and Stock Exchange 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 Life with a short position of Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Life and Stock Exchange.
Diversification Opportunities for Thai Life and Stock Exchange
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thai and Stock is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Thai Life Insurance and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange and Thai Life 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 Life Insurance are associated (or correlated) with Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of Thai Life i.e., Thai Life and Stock Exchange go up and down completely randomly.
Pair Corralation between Thai Life and Stock Exchange
Assuming the 90 days trading horizon Thai Life Insurance is expected to under-perform the Stock Exchange. In addition to that, Thai Life is 3.6 times more volatile than Stock Exchange Of. It trades about -0.04 of its total potential returns per unit of risk. Stock Exchange Of is currently generating about -0.09 per unit of volatility. If you would invest 146,064 in Stock Exchange Of on August 24, 2024 and sell it today you would lose (2,018) from holding Stock Exchange Of or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Life Insurance vs. Stock Exchange Of
Performance |
| Timeline |
Thai Life and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Thai Life Insurance
Pair trading matchups for Thai Life
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with Thai Life and Stock Exchange
The main advantage of trading using opposite Thai Life and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Life position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange's long position.| Thai Life vs. Bangkok Life Assurance | Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. Muangthai Capital Public |
| Stock Exchange vs. PTT OIL RETAIL | Stock Exchange vs. Bangkok Bank Public | Stock Exchange vs. Bhiraj Office Leasehold | Stock Exchange vs. Lotus Retail Growth |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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