Correlation Between Internet Thailand and Golden Ventures

Can any of the company-specific risk be diversified away by investing in both Internet Thailand and Golden Ventures 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 Golden Ventures 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 Golden Ventures Leasehold, you can compare the effects of market volatilities on Internet Thailand and Golden Ventures 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 Golden Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and Golden Ventures.

Diversification Opportunities for Internet Thailand and Golden Ventures

0.23

Correlation Coefficient

Internet Thailand  Golden Ventures

Modest diversification

The 3 months correlation between Internet and Golden is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Golden Ventures Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ventures Leasehold 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 Golden Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ventures Leasehold has no effect on the direction of Internet Thailand i.e., Internet Thailand and Golden Ventures go up and down completely randomly.

Pair Corralation between Internet Thailand and Golden Ventures

Assuming the 90 days trading horizon Internet Thailand Public is expected to under-perform the Golden Ventures. In addition to that, Internet Thailand is 3.03 times more volatile than Golden Ventures Leasehold. It trades about -0.01 of its total potential returns per unit of risk. Golden Ventures Leasehold is currently generating about 0.02 per unit of volatility. If you would invest  651.00  in Golden Ventures Leasehold on April 23, 2025 and sell it today you would earn a total of  4.00  from holding Golden Ventures Leasehold or generate 0.61% return on investment over 90 days.

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

Internet Thailand Public  vs.  Golden Ventures Leasehold

Internet Thailand Public

Risk-Adjusted Performance

Very Weak

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

Golden Ventures Leasehold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Ventures Leasehold are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Golden Ventures is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Internet Thailand and Golden Ventures

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

The idea behind Internet Thailand Public and Golden Ventures Leasehold 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.