Correlation Between Thai Life and Triple I
Can any of the company-specific risk be diversified away by investing in both Thai Life and Triple I 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 Life and Triple I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Life Insurance and Triple i Logistics, you can compare the effects of market volatilities on Thai Life and Triple I 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 Life with a short position of Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Life and Triple I.
Diversification Opportunities for Thai Life and Triple I
Very good diversification
The 3 months correlation between Thai and Triple is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thai Life Insurance and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics and Thai Life 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 Life Insurance are associated (or correlated) with Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Thai Life i.e., Thai Life and Triple I go up and down completely randomly.
Pair Corralation between Thai Life and Triple I
Assuming the 90 days trading horizon Thai Life Insurance is expected to generate 1.22 times more return on investment than Triple I. However, Thai Life is 1.22 times more volatile than Triple i Logistics. It trades about 0.01 of its potential returns per unit of risk. Triple i Logistics is currently generating about -0.2 per unit of risk. If you would invest 1,040 in Thai Life Insurance on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Thai Life Insurance or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Thai Life Insurance vs. Triple i Logistics
Performance |
Timeline |
Thai Life Insurance |
Triple i Logistics |
Thai Life and Triple I Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thai Life and Triple I
The main advantage of trading using opposite Thai Life and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Life position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.Thai Life vs. Bangkok Life Assurance | Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. The Erawan Group |
Triple I vs. Land and Houses | Triple I vs. CH Karnchang Public | Triple I vs. Krung Thai Bank | Triple I vs. Bangkok Bank Public |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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