Correlation Between Filter Vision and Cho Thavee

Can any of the company-specific risk be diversified away by investing in both Filter Vision and Cho Thavee 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 Filter Vision and Cho Thavee into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Filter Vision Public and Cho Thavee Public, you can compare the effects of market volatilities on Filter Vision and Cho Thavee 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 Filter Vision with a short position of Cho Thavee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filter Vision and Cho Thavee.

Diversification Opportunities for Filter Vision and Cho Thavee

0.46

Correlation Coefficient

Filter Vision  Cho Thavee

Very weak diversification

The 3 months correlation between Filter and Cho is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Filter Vision Public and Cho Thavee Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Thavee Public and Filter Vision 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 Filter Vision Public are associated (or correlated) with Cho Thavee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Thavee Public has no effect on the direction of Filter Vision i.e., Filter Vision and Cho Thavee go up and down completely randomly.

Pair Corralation between Filter Vision and Cho Thavee

Assuming the 90 days trading horizon Filter Vision Public is expected to under-perform the Cho Thavee. But the stock apears to be less risky and, when comparing its historical volatility, Filter Vision Public is 6.77 times less risky than Cho Thavee. The stock trades about -0.03 of its potential returns per unit of risk. The Cho Thavee Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6.00  in Cho Thavee Public on September 5, 2024 and sell it today you would lose (2.00) from holding Cho Thavee Public or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Filter Vision Public  vs.  Cho Thavee Public

Filter Vision Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cho Thavee Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Filter Vision and Cho Thavee

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

The idea behind Filter Vision Public and Cho Thavee Public 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.