Correlation Between United Hero and ThaiDex SET50
Can any of the company-specific risk be diversified away by investing in both United Hero and ThaiDex SET50 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 ThaiDex SET50 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 ThaiDex SET50 Exchange, you can compare the effects of market volatilities on United Hero and ThaiDex SET50 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 ThaiDex SET50. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Hero and ThaiDex SET50.
Diversification Opportunities for United Hero and ThaiDex SET50
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between United and ThaiDex is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding United Hero ETF and ThaiDex SET50 Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDex SET50 Exchange 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 ThaiDex SET50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDex SET50 Exchange has no effect on the direction of United Hero i.e., United Hero and ThaiDex SET50 go up and down completely randomly.
Pair Corralation between United Hero and ThaiDex SET50
Assuming the 90 days trading horizon United Hero ETF is expected to generate 406.31 times more return on investment than ThaiDex SET50. However, United Hero is 406.31 times more volatile than ThaiDex SET50 Exchange. It trades about 0.27 of its potential returns per unit of risk. ThaiDex SET50 Exchange is currently generating about -0.04 per unit of risk. If you would invest 784.00 in United Hero ETF on August 24, 2024 and sell it today you would earn a total of 19.00 from holding United Hero ETF or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Hero ETF vs. ThaiDex SET50 Exchange
Performance |
| Timeline |
| United Hero ETF |
| ThaiDex SET50 Exchange |
United Hero and ThaiDex SET50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Hero and ThaiDex SET50
The main advantage of trading using opposite United Hero and ThaiDex SET50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Hero position performs unexpectedly, ThaiDex SET50 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 ThaiDex SET50 will offset losses from the drop in ThaiDex SET50's long position.| United Hero vs. ThaiDex SET50 Exchange | United Hero vs. BCAP MSCI Thailand | United Hero vs. BCAP SET100 | United Hero vs. KTAM Gold ETF |
| ThaiDex SET50 vs. United Hero ETF | ThaiDex SET50 vs. BCAP SET100 | ThaiDex SET50 vs. WISE KTAM CSI | ThaiDex SET50 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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