Correlation Between Astar and Thai Fund

Can any of the company-specific risk be diversified away by investing in both Astar and Thai Fund 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 Astar and Thai Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astar and Thai Fund Common, you can compare the effects of market volatilities on Astar and Thai Fund 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 Astar with a short position of Thai Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Thai Fund.

Diversification Opportunities for Astar and Thai Fund

0.0

Correlation Coefficient

Astar  Thai Fund

Pay attention - limited upside

The 3 months correlation between Astar and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Thai Fund Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Fund Common and Astar 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 Astar are associated (or correlated) with Thai Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Fund Common has no effect on the direction of Astar i.e., Astar and Thai Fund go up and down completely randomly.

Pair Corralation between Astar and Thai Fund

If you would invest (100.00) in Thai Fund Common on October 11, 2024 and sell it today you would earn a total of  100.00  from holding Thai Fund Common or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Astar  vs.  Thai Fund Common

Astar

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astar are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Astar may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Thai Fund Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thai Fund Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Thai Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Astar and Thai Fund

The main advantage of trading using opposite Astar and Thai Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Thai Fund 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 Fund will offset losses from the drop in Thai Fund's long position.

The idea behind Astar and Thai Fund Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.