Correlation Between Dusit Thani and Impact Growth

Can any of the company-specific risk be diversified away by investing in both Dusit Thani and Impact Growth 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 Dusit Thani and Impact Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dusit Thani Freehold and Impact Growth REIT, you can compare the effects of market volatilities on Dusit Thani and Impact Growth 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 Dusit Thani with a short position of Impact Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dusit Thani and Impact Growth.

Diversification Opportunities for Dusit Thani and Impact Growth

-0.35

Correlation Coefficient

Dusit Thani  Impact Growth

Very good diversification

The 3 months correlation between Dusit and Impact is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dusit Thani Freehold and Impact Growth REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Growth REIT and Dusit Thani 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 Dusit Thani Freehold are associated (or correlated) with Impact Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Growth REIT has no effect on the direction of Dusit Thani i.e., Dusit Thani and Impact Growth go up and down completely randomly.

Pair Corralation between Dusit Thani and Impact Growth

Assuming the 90 days trading horizon Dusit Thani Freehold is expected to generate 0.92 times more return on investment than Impact Growth. However, Dusit Thani Freehold is 1.09 times less risky than Impact Growth. It trades about 0.0 of its potential returns per unit of risk. Impact Growth REIT is currently generating about -0.03 per unit of risk. If you would invest  496.00  in Dusit Thani Freehold on April 24, 2025 and sell it today you would lose (18.00) from holding Dusit Thani Freehold or give up 3.63% of portfolio value over 90 days.

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

Dusit Thani Freehold  vs.  Impact Growth REIT

Dusit Thani Freehold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dusit Thani Freehold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Dusit Thani is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Impact Growth REIT

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Impact Growth REIT are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Impact Growth is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dusit Thani and Impact Growth

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

The idea behind Dusit Thani Freehold and Impact Growth REIT 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.