Correlation Between Internet Thailand and G J

Can any of the company-specific risk be diversified away by investing in both Internet Thailand and G J 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 Internet Thailand and G J into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Internet Thailand Public and G J Steel, you can compare the effects of market volatilities on Internet Thailand and G J 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 Internet Thailand with a short position of G J. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and G J.

Diversification Opportunities for Internet Thailand and G J

-0.67

Correlation Coefficient

Internet Thailand  G J

Excellent diversification

The 3 months correlation between Internet and GJS is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and G J Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G J Steel and Internet Thailand 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 Internet Thailand Public are associated (or correlated) with G J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G J Steel has no effect on the direction of Internet Thailand i.e., Internet Thailand and G J go up and down completely randomly.

Pair Corralation between Internet Thailand and G J

Assuming the 90 days trading horizon Internet Thailand Public is expected to generate 1.25 times more return on investment than G J. However, Internet Thailand is 1.25 times more volatile than G J Steel. It trades about 0.11 of its potential returns per unit of risk. G J Steel is currently generating about -0.02 per unit of risk. If you would invest  462.00  in Internet Thailand Public on September 15, 2024 and sell it today you would earn a total of  143.00  from holding Internet Thailand Public or generate 30.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Internet Thailand Public  vs.  G J Steel

Internet Thailand Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Internet Thailand Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Internet Thailand disclosed solid returns over the last few months and may actually be approaching a breakup point.

G J Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G J Steel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Internet Thailand and G J

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

The idea behind Internet Thailand Public and G J Steel 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.