Correlation Between AddTech Hub and THAI LIFE

Can any of the company-specific risk be diversified away by investing in both AddTech Hub and THAI LIFE 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 AddTech Hub and THAI LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AddTech Hub Public and THAI LIFE INSURANCE, you can compare the effects of market volatilities on AddTech Hub and THAI LIFE 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 AddTech Hub with a short position of THAI LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddTech Hub and THAI LIFE.

Diversification Opportunities for AddTech Hub and THAI LIFE

0.45

Correlation Coefficient

AddTech Hub  THAI LIFE

Very weak diversification

The 3 months correlation between AddTech and THAI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AddTech Hub Public and THAI LIFE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI LIFE INSURANCE and AddTech Hub 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 AddTech Hub Public are associated (or correlated) with THAI LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI LIFE INSURANCE has no effect on the direction of AddTech Hub i.e., AddTech Hub and THAI LIFE go up and down completely randomly.

Pair Corralation between AddTech Hub and THAI LIFE

Assuming the 90 days trading horizon AddTech Hub Public is expected to generate 0.59 times more return on investment than THAI LIFE. However, AddTech Hub Public is 1.69 times less risky than THAI LIFE. It trades about 0.04 of its potential returns per unit of risk. THAI LIFE INSURANCE is currently generating about -0.08 per unit of risk. If you would invest  328.00  in AddTech Hub Public on April 22, 2025 and sell it today you would earn a total of  10.00  from holding AddTech Hub Public or generate 3.05% return on investment over 90 days.

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

AddTech Hub Public  vs.  THAI LIFE INSURANCE

AddTech Hub Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AddTech Hub Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, AddTech Hub is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

THAI LIFE INSURANCE

Risk-Adjusted Performance

Very Weak

Over the last 90 days THAI LIFE INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with AddTech Hub and THAI LIFE

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

The idea behind AddTech Hub Public and THAI LIFE INSURANCE 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.