Correlation Between ThaiDex SET50 and United Robotics

Can any of the company-specific risk be diversified away by investing in both ThaiDex SET50 and United Robotics 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 ThaiDex SET50 and United Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ThaiDex SET50 Exchange and United Robotics Artificial, you can compare the effects of market volatilities on ThaiDex SET50 and United Robotics 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 ThaiDex SET50 with a short position of United Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ThaiDex SET50 and United Robotics.

Diversification Opportunities for ThaiDex SET50 and United Robotics

0.0

Correlation Coefficient

ThaiDex SET50  United Robotics

Pay attention - limited upside

The 3 months correlation between ThaiDex and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ThaiDex SET50 Exchange and United Robotics Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Robotics Arti and ThaiDex SET50 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 ThaiDex SET50 Exchange are associated (or correlated) with United Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Robotics Arti has no effect on the direction of ThaiDex SET50 i.e., ThaiDex SET50 and United Robotics go up and down completely randomly.

Pair Corralation between ThaiDex SET50 and United Robotics

If you would invest  1,273  in United Robotics Artificial on October 9, 2024 and sell it today you would earn a total of  117.00  from holding United Robotics Artificial or generate 9.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.42%
Values	Daily Returns

ThaiDex SET50 Exchange  vs.  United Robotics Artificial

ThaiDex SET50 Exchange

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ThaiDex SET50 Exchange has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, ThaiDex SET50 is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

United Robotics Arti

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in United Robotics Artificial are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, United Robotics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ThaiDex SET50 and United Robotics

The main advantage of trading using opposite ThaiDex SET50 and United Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ThaiDex SET50 position performs unexpectedly, United Robotics 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 United Robotics will offset losses from the drop in United Robotics' long position.

The idea behind ThaiDex SET50 Exchange and United Robotics Artificial 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.