Correlation Between Stock Exchange and ThaiDEX SET100

Can any of the company-specific risk be diversified away by investing in both Stock Exchange and ThaiDEX SET100 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 Stock Exchange and ThaiDEX SET100 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stock Exchange Of and ThaiDEX SET100 ETF, you can compare the effects of market volatilities on Stock Exchange and ThaiDEX SET100 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 Stock Exchange with a short position of ThaiDEX SET100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and ThaiDEX SET100.

Diversification Opportunities for Stock Exchange and ThaiDEX SET100

0.0

Correlation Coefficient

Stock Exchange  ThaiDEX SET100

Pay attention - limited upside

The 3 months correlation between Stock and ThaiDEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and ThaiDEX SET100 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDEX SET100 ETF and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with ThaiDEX SET100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDEX SET100 ETF has no effect on the direction of Stock Exchange i.e., Stock Exchange and ThaiDEX SET100 go up and down completely randomly.

Pair Corralation between Stock Exchange and ThaiDEX SET100

If you would invest (100.00) in ThaiDEX SET100 ETF on December 22, 2024 and sell it today you would earn a total of  100.00  from holding ThaiDEX SET100 ETF 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

Stock Exchange Of  vs.  ThaiDEX SET100 ETF

Pair Trading with Stock Exchange and ThaiDEX SET100

The main advantage of trading using opposite Stock Exchange and ThaiDEX SET100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, ThaiDEX SET100 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 ThaiDEX SET100 will offset losses from the drop in ThaiDEX SET100's long position.

The idea behind Stock Exchange Of and ThaiDEX SET100 ETF 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.