Correlation Between Thai Life and WHA Industrial
Can any of the company-specific risk be diversified away by investing in both Thai Life and WHA Industrial 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 WHA Industrial 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 WHA Industrial Leasehold, you can compare the effects of market volatilities on Thai Life and WHA Industrial 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 WHA Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Life and WHA Industrial.
Diversification Opportunities for Thai Life and WHA Industrial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and WHA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Thai Life Insurance and WHA Industrial Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Industrial Leasehold 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 WHA Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Industrial Leasehold has no effect on the direction of Thai Life i.e., Thai Life and WHA Industrial go up and down completely randomly.
Pair Corralation between Thai Life and WHA Industrial
Assuming the 90 days trading horizon Thai Life Insurance is expected to under-perform the WHA Industrial. In addition to that, Thai Life is 2.04 times more volatile than WHA Industrial Leasehold. It trades about -0.07 of its total potential returns per unit of risk. WHA Industrial Leasehold is currently generating about 0.06 per unit of volatility. If you would invest 641.00 in WHA Industrial Leasehold on August 31, 2024 and sell it today you would earn a total of 9.00 from holding WHA Industrial Leasehold or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Life Insurance vs. WHA Industrial Leasehold
Performance |
| Timeline |
| Thai Life Insurance |
| WHA Industrial Leasehold |
Thai Life and WHA Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Life and WHA Industrial
The main advantage of trading using opposite Thai Life and WHA Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Life position performs unexpectedly, WHA Industrial 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 WHA Industrial will offset losses from the drop in WHA Industrial's long position.| Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. Muangthai Capital Public | Thai Life vs. The Erawan Group |
| WHA Industrial vs. LH Shopping Centers | WHA Industrial vs. HEMARAJ INDUSTRIAL PROPERTY | WHA Industrial vs. Land and Houses |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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