Correlation Between Visa and Thaicom Public
Can any of the company-specific risk be diversified away by investing in both Visa and Thaicom 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 Visa and Thaicom Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Thaicom Public, you can compare the effects of market volatilities on Visa and Thaicom 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 Visa with a short position of Thaicom Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Thaicom Public.
Diversification Opportunities for Visa and Thaicom Public
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Thaicom is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom Public and Visa 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 Visa Class A are associated (or correlated) with Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of Visa i.e., Visa and Thaicom Public go up and down completely randomly.
Pair Corralation between Visa and Thaicom Public
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.36 times more return on investment than Thaicom Public. However, Visa Class A is 2.78 times less risky than Thaicom Public. It trades about 0.35 of its potential returns per unit of risk. Thaicom Public is currently generating about -0.13 per unit of risk. If you would invest 33,392 in Visa Class A on November 29, 2024 and sell it today you would earn a total of 2,191 from holding Visa Class A or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Thaicom Public
Performance |
| Timeline |
| Visa Class A |
| Thaicom Public |
Visa and Thaicom Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Thaicom Public
The main advantage of trading using opposite Visa and Thaicom Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Thaicom 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 Thaicom Public will offset losses from the drop in Thaicom Public's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Thaicom Public vs. Intouch Holdings Public | Thaicom Public vs. Advanced Info Service | Thaicom Public vs. True Public | Thaicom Public vs. PTT Global Chemical |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| 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 |