Correlation Between Cho Thavee and Filter Vision

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

By analyzing existing cross correlation between Cho Thavee Public and Filter Vision Public, you can compare the effects of market volatilities on Cho Thavee and Filter Vision 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 Cho Thavee with a short position of Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Thavee and Filter Vision.

Diversification Opportunities for Cho Thavee and Filter Vision

0.44

Correlation Coefficient

Cho Thavee  Filter Vision

Very weak diversification

The 3 months correlation between Cho and Filter is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cho Thavee Public and Filter Vision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filter Vision Public and Cho Thavee 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 Cho Thavee Public are associated (or correlated) with Filter Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filter Vision Public has no effect on the direction of Cho Thavee i.e., Cho Thavee and Filter Vision go up and down completely randomly.

Pair Corralation between Cho Thavee and Filter Vision

Assuming the 90 days trading horizon Cho Thavee Public is expected to generate 5.28 times more return on investment than Filter Vision. However, Cho Thavee is 5.28 times more volatile than Filter Vision Public. It trades about 0.03 of its potential returns per unit of risk. Filter Vision Public is currently generating about 0.04 per unit of risk. If you would invest  5.00  in Cho Thavee Public on December 29, 2024 and sell it today you would lose (2.00) from holding Cho Thavee Public or give up 40.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cho Thavee Public  vs.  Filter Vision Public

Cho Thavee Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cho Thavee Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Cho Thavee disclosed solid returns over the last few months and may actually be approaching a breakup point.

Filter Vision Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Filter Vision Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, Filter Vision may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cho Thavee and Filter Vision

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

The idea behind Cho Thavee Public and Filter Vision Public 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.