Correlation Between Amata Summit and Thai Group
Can any of the company-specific risk be diversified away by investing in both Amata Summit and Thai Group 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 Amata Summit and Thai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amata Summit Growth and Thai Group Holdings, you can compare the effects of market volatilities on Amata Summit and Thai Group 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 Amata Summit with a short position of Thai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amata Summit and Thai Group.
Diversification Opportunities for Amata Summit and Thai Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amata and Thai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Amata Summit Growth and Thai Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Group Holdings and Amata Summit 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 Amata Summit Growth are associated (or correlated) with Thai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Group Holdings has no effect on the direction of Amata Summit i.e., Amata Summit and Thai Group go up and down completely randomly.
Pair Corralation between Amata Summit and Thai Group
Assuming the 90 days trading horizon Amata Summit is expected to generate 111.78 times less return on investment than Thai Group. But when comparing it to its historical volatility, Amata Summit Growth is 2.65 times less risky than Thai Group. It trades about 0.0 of its potential returns per unit of risk. Thai Group Holdings is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,210 in Thai Group Holdings on September 24, 2024 and sell it today you would earn a total of 90.00 from holding Thai Group Holdings or generate 7.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Amata Summit Growth vs. Thai Group Holdings
Performance |
Timeline |
Amata Summit Growth |
Thai Group Holdings |
Amata Summit and Thai Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amata Summit and Thai Group
The main advantage of trading using opposite Amata Summit and Thai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amata Summit position performs unexpectedly, Thai Group 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 Thai Group will offset losses from the drop in Thai Group's long position.Amata Summit vs. WHA Premium Growth | Amata Summit vs. AIM Industrial Growth | Amata Summit vs. Bangkok Commercial Property | Amata Summit vs. Quality Houses Property |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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