Correlation Between Computer and Internet Thailand
Can any of the company-specific risk be diversified away by investing in both Computer and Internet Thailand 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 Computer and Internet Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer And Technologies and Internet Thailand PCL, you can compare the effects of market volatilities on Computer and Internet Thailand 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 Computer with a short position of Internet Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer and Internet Thailand.
Diversification Opportunities for Computer and Internet Thailand
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Computer and Internet is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies and Internet Thailand PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand PCL and Computer 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 Computer And Technologies are associated (or correlated) with Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand PCL has no effect on the direction of Computer i.e., Computer and Internet Thailand go up and down completely randomly.
Pair Corralation between Computer and Internet Thailand
Assuming the 90 days horizon Computer is expected to generate 8.93 times less return on investment than Internet Thailand. But when comparing it to its historical volatility, Computer And Technologies is 11.77 times less risky than Internet Thailand. It trades about 0.06 of its potential returns per unit of risk. Internet Thailand PCL is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Internet Thailand PCL on September 23, 2024 and sell it today you would earn a total of 3.00 from holding Internet Thailand PCL or generate 23.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Computer And Technologies vs. Internet Thailand PCL
Performance |
Timeline |
Computer And Technologies |
Internet Thailand PCL |
Computer and Internet Thailand Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Computer and Internet Thailand
The main advantage of trading using opposite Computer and Internet Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer position performs unexpectedly, Internet Thailand 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 Internet Thailand will offset losses from the drop in Internet Thailand's long position.Computer vs. Accenture plc | Computer vs. International Business Machines | Computer vs. Infosys Limited | Computer vs. Cognizant Technology Solutions |
Internet Thailand vs. Hitachi Construction Machinery | Internet Thailand vs. CI GAMES SA | Internet Thailand vs. OURGAME INTHOLDL 00005 | Internet Thailand vs. Sterling Construction |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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