Correlation Between WHA Premium and Dusit Thani
Can any of the company-specific risk be diversified away by investing in both WHA Premium and Dusit Thani 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 Premium and Dusit Thani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Premium Growth and Dusit Thani Freehold, you can compare the effects of market volatilities on WHA Premium and Dusit Thani 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 Premium with a short position of Dusit Thani. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Premium and Dusit Thani.
Diversification Opportunities for WHA Premium and Dusit Thani
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between WHA and Dusit is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding WHA Premium Growth and Dusit Thani Freehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dusit Thani Freehold and WHA Premium 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 Premium Growth are associated (or correlated) with Dusit Thani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dusit Thani Freehold has no effect on the direction of WHA Premium i.e., WHA Premium and Dusit Thani go up and down completely randomly.
Pair Corralation between WHA Premium and Dusit Thani
Assuming the 90 days trading horizon WHA Premium is expected to generate 41.55 times less return on investment than Dusit Thani. But when comparing it to its historical volatility, WHA Premium Growth is 57.15 times less risky than Dusit Thani. It trades about 0.11 of its potential returns per unit of risk. Dusit Thani Freehold is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Dusit Thani Freehold on August 29, 2024 and sell it today you would earn a total of 59.00 from holding Dusit Thani Freehold or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Premium Growth vs. Dusit Thani Freehold
Performance |
| Timeline |
| WHA Premium Growth |
| Dusit Thani Freehold |
WHA Premium and Dusit Thani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Premium and Dusit Thani
The main advantage of trading using opposite WHA Premium and Dusit Thani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Premium position performs unexpectedly, Dusit Thani 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 Dusit Thani will offset losses from the drop in Dusit Thani's long position.| WHA Premium vs. Quality Houses Property | WHA Premium vs. Land and Houses | WHA Premium vs. LH Hotel Leasehold | WHA Premium vs. LH Shopping Centers |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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