Correlation Between Thai Reinsurance and Thaire Life

Can any of the company-specific risk be diversified away by investing in both Thai Reinsurance and Thaire Life 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 Thai Reinsurance and Thaire Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thai Reinsurance Public and Thaire Life Assurance, you can compare the effects of market volatilities on Thai Reinsurance and Thaire Life 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 Thai Reinsurance with a short position of Thaire Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Reinsurance and Thaire Life.

Diversification Opportunities for Thai Reinsurance and Thaire Life

0.0

Correlation Coefficient

Thai Reinsurance  Thaire Life

Pay attention - limited upside

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

Pair Corralation between Thai Reinsurance and Thaire Life

If you would invest  0.00  in Thai Reinsurance Public on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Thai Reinsurance Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Thai Reinsurance Public  vs.  Thaire Life Assurance

Thai Reinsurance Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Thaire Life Assurance

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Thaire Life Assurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Thaire Life is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thai Reinsurance and Thaire Life

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

The idea behind Thai Reinsurance Public and Thaire Life Assurance 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .