Correlation Between Thai OPP and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Thai OPP and Dow Jones 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 OPP and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai OPP Public and Dow Jones Industrial, you can compare the effects of market volatilities on Thai OPP and Dow Jones 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 OPP with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai OPP and Dow Jones.
Diversification Opportunities for Thai OPP and Dow Jones
Modest diversification
The 3 months correlation between Thai and Dow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thai OPP Public and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Thai OPP 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 OPP Public are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Thai OPP i.e., Thai OPP and Dow Jones go up and down completely randomly.
Pair Corralation between Thai OPP and Dow Jones
Assuming the 90 days trading horizon Thai OPP Public is expected to generate 66.26 times more return on investment than Dow Jones. However, Thai OPP is 66.26 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 15,196 in Thai OPP Public on August 28, 2024 and sell it today you would earn a total of 1,704 from holding Thai OPP Public or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.64% |
| Values | Daily Returns |
Thai OPP Public vs. Dow Jones Industrial
Performance |
| Timeline |
Thai OPP and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Thai OPP Public
Pair trading matchups for Thai OPP
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Thai OPP and Dow Jones
The main advantage of trading using opposite Thai OPP and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai OPP position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Thai OPP vs. PTT OIL RETAIL | Thai OPP vs. SAF Special Steel | Thai OPP vs. Lotus Retail Growth | Thai OPP vs. CHUWIT FARM PUBLIC |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |