Correlation Between Haad Thip and Ditto Public

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Can any of the company-specific risk be diversified away by investing in both Haad Thip and Ditto Public 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 Haad Thip and Ditto Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and Ditto Public, you can compare the effects of market volatilities on Haad Thip and Ditto Public 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 Haad Thip with a short position of Ditto Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and Ditto Public.

Diversification Opportunities for Haad Thip and Ditto Public

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Haad and Ditto is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and Ditto Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditto Public and Haad Thip 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 Haad Thip Public are associated (or correlated) with Ditto Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditto Public has no effect on the direction of Haad Thip i.e., Haad Thip and Ditto Public go up and down completely randomly.

Pair Corralation between Haad Thip and Ditto Public

Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.39 times more return on investment than Ditto Public. However, Haad Thip Public is 2.53 times less risky than Ditto Public. It trades about 0.03 of its potential returns per unit of risk. Ditto Public is currently generating about -0.07 per unit of risk. If you would invest  1,482  in Haad Thip Public on October 9, 2024 and sell it today you would earn a total of  128.00  from holding Haad Thip Public or generate 8.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Haad Thip Public  vs.  Ditto Public

 Performance 
       Timeline  
Haad Thip Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Haad Thip Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Haad Thip is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Ditto Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ditto Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Haad Thip and Ditto Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Haad Thip and Ditto Public

The main advantage of trading using opposite Haad Thip and Ditto Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, Ditto Public 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 Ditto Public will offset losses from the drop in Ditto Public's long position.
The idea behind Haad Thip Public and Ditto 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.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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