Correlation Between United Hero and ABF Thailand
Can any of the company-specific risk be diversified away by investing in both United Hero and ABF Thailand 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 United Hero and ABF Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Hero ETF and The ABF Thailand, you can compare the effects of market volatilities on United Hero and ABF Thailand 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 United Hero with a short position of ABF Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Hero and ABF Thailand.
Diversification Opportunities for United Hero and ABF Thailand
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between United and ABF is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding United Hero ETF and The ABF Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABF Thailand and United Hero 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 United Hero ETF are associated (or correlated) with ABF Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABF Thailand has no effect on the direction of United Hero i.e., United Hero and ABF Thailand go up and down completely randomly.
Pair Corralation between United Hero and ABF Thailand
Assuming the 90 days trading horizon United Hero is expected to generate 1.67 times less return on investment than ABF Thailand. But when comparing it to its historical volatility, United Hero ETF is 1.69 times less risky than ABF Thailand. It trades about 0.23 of its potential returns per unit of risk. The ABF Thailand is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 124,500 in The ABF Thailand on September 13, 2024 and sell it today you would earn a total of 9,900 from holding The ABF Thailand or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Hero ETF vs. The ABF Thailand
Performance |
| Timeline |
| United Hero ETF |
| ABF Thailand |
United Hero and ABF Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Hero and ABF Thailand
The main advantage of trading using opposite United Hero and ABF Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Hero position performs unexpectedly, ABF Thailand 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 ABF Thailand will offset losses from the drop in ABF Thailand's long position.| United Hero vs. BCAP MSCI Thailand | United Hero vs. BCAP SET100 | United Hero vs. KTAM Gold ETF | United Hero vs. WISE KTAM CSI |
| ABF Thailand vs. United Hero ETF | ABF Thailand vs. BCAP SET100 | ABF Thailand vs. WISE KTAM CSI | ABF Thailand vs. KTAM Gold ETF |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |