Correlation Between Haad Thip and S Khonkaen
Can any of the company-specific risk be diversified away by investing in both Haad Thip and S Khonkaen 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 S Khonkaen 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 S Khonkaen Foods, you can compare the effects of market volatilities on Haad Thip and S Khonkaen 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 S Khonkaen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and S Khonkaen.
Diversification Opportunities for Haad Thip and S Khonkaen
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haad and SORKON is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and S Khonkaen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Khonkaen Foods 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 S Khonkaen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Khonkaen Foods has no effect on the direction of Haad Thip i.e., Haad Thip and S Khonkaen go up and down completely randomly.
Pair Corralation between Haad Thip and S Khonkaen
Assuming the 90 days trading horizon Haad Thip is expected to generate 1.27 times less return on investment than S Khonkaen. But when comparing it to its historical volatility, Haad Thip Public is 1.12 times less risky than S Khonkaen. It trades about 0.04 of its potential returns per unit of risk. S Khonkaen Foods is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 430.00 in S Khonkaen Foods on December 4, 2024 and sell it today you would earn a total of 10.00 from holding S Khonkaen Foods or generate 2.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Haad Thip Public vs. S Khonkaen Foods
Performance |
Timeline |
Haad Thip Public |
S Khonkaen Foods |
Haad Thip and S Khonkaen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haad Thip and S Khonkaen
The main advantage of trading using opposite Haad Thip and S Khonkaen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, S Khonkaen 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 S Khonkaen will offset losses from the drop in S Khonkaen's long position.Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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