Correlation Between Ubis Public and Thanapiriya Public
Can any of the company-specific risk be diversified away by investing in both Ubis Public and Thanapiriya Public 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 Ubis Public and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubis Public and Thanapiriya Public, you can compare the effects of market volatilities on Ubis Public and Thanapiriya Public 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 Ubis Public with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubis Public and Thanapiriya Public.
Diversification Opportunities for Ubis Public and Thanapiriya Public
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ubis and Thanapiriya is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ubis Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and Ubis Public 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 Ubis Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of Ubis Public i.e., Ubis Public and Thanapiriya Public go up and down completely randomly.
Pair Corralation between Ubis Public and Thanapiriya Public
Assuming the 90 days trading horizon Ubis Public is expected to generate 1.04 times less return on investment than Thanapiriya Public. In addition to that, Ubis Public is 1.0 times more volatile than Thanapiriya Public. It trades about 0.08 of its total potential returns per unit of risk. Thanapiriya Public is currently generating about 0.08 per unit of volatility. If you would invest 355.00 in Thanapiriya Public on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Thanapiriya Public or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubis Public vs. Thanapiriya Public
Performance |
| Timeline |
| Ubis Public |
| Thanapiriya Public |
Ubis Public and Thanapiriya Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubis Public and Thanapiriya Public
The main advantage of trading using opposite Ubis Public and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubis Public position performs unexpectedly, Thanapiriya Public 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public's long position.| Ubis Public vs. PTT Public | Ubis Public vs. The Siam Commercial | Ubis Public vs. Airports of Thailand | Ubis Public vs. CP ALL Public |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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