Correlation Between United Hero and ThaiDEX SET100

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

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

Diversification Opportunities for United Hero and ThaiDEX SET100

0.0

Correlation Coefficient

United Hero  ThaiDEX SET100

Pay attention - limited upside

The 3 months correlation between United and ThaiDEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Hero ETF 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 United Hero 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 United Hero ETF 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 United Hero i.e., United Hero and ThaiDEX SET100 go up and down completely randomly.

Pair Corralation between United Hero and ThaiDEX SET100

If you would invest  0.00  in United Hero ETF on October 6, 2024 and sell it today you would earn a total of  804.00  from holding United Hero ETF or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

United Hero ETF  vs.  ThaiDEX SET100 ETF

United Hero ETF

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in United Hero ETF are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, United Hero sustained solid returns over the last few months and may actually be approaching a breakup point.

ThaiDEX SET100 ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ThaiDEX SET100 ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ThaiDEX SET100 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with United Hero and ThaiDEX SET100

The main advantage of trading using opposite United Hero and ThaiDEX SET100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Hero 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 United Hero ETF 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.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.