Correlation Between WHA Industrial and Thai Life
Can any of the company-specific risk be diversified away by investing in both WHA Industrial and Thai Life 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 WHA Industrial and Thai Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Industrial Leasehold and Thai Life Insurance, you can compare the effects of market volatilities on WHA Industrial and Thai Life 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 WHA Industrial with a short position of Thai Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Industrial and Thai Life.
Diversification Opportunities for WHA Industrial and Thai Life
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WHA and Thai is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold and Thai Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Life Insurance and WHA Industrial 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 WHA Industrial Leasehold are associated (or correlated) with Thai Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Life Insurance has no effect on the direction of WHA Industrial i.e., WHA Industrial and Thai Life go up and down completely randomly.
Pair Corralation between WHA Industrial and Thai Life
Assuming the 90 days trading horizon WHA Industrial Leasehold is expected to under-perform the Thai Life. But the stock apears to be less risky and, when comparing its historical volatility, WHA Industrial Leasehold is 1.0 times less risky than Thai Life. The stock trades about -0.21 of its potential returns per unit of risk. The Thai Life Insurance is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Thai Life Insurance on November 29, 2024 and sell it today you would earn a total of 110.00 from holding Thai Life Insurance or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Industrial Leasehold vs. Thai Life Insurance
Performance |
| Timeline |
| WHA Industrial Leasehold |
| Thai Life Insurance |
WHA Industrial and Thai Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Industrial and Thai Life
The main advantage of trading using opposite WHA Industrial and Thai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Industrial position performs unexpectedly, Thai Life 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 Thai Life will offset losses from the drop in Thai Life's long position.| WHA Industrial vs. Quality Houses Property | WHA Industrial vs. Ticon Freehold and | WHA Industrial vs. CPN Retail Growth | WHA Industrial vs. Prospect Logistics and |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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