Correlation Between Italian Thai and Property Perfect

Can any of the company-specific risk be diversified away by investing in both Italian Thai and Property Perfect 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 Italian Thai and Property Perfect into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Italian Thai Development Public and Property Perfect Public, you can compare the effects of market volatilities on Italian Thai and Property Perfect 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 Italian Thai with a short position of Property Perfect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Italian Thai and Property Perfect.

Diversification Opportunities for Italian Thai and Property Perfect

0.6

Correlation Coefficient

Italian Thai  Property Perfect

Poor diversification

The 3 months correlation between Italian and Property is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Italian Thai Development Publi and Property Perfect Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Property Perfect Public and Italian Thai 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 Italian Thai Development Public are associated (or correlated) with Property Perfect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Property Perfect Public has no effect on the direction of Italian Thai i.e., Italian Thai and Property Perfect go up and down completely randomly.

Pair Corralation between Italian Thai and Property Perfect

Assuming the 90 days trading horizon Italian Thai Development Public is expected to generate 1.0 times more return on investment than Property Perfect. However, Italian Thai is 1.0 times more volatile than Property Perfect Public. It trades about 0.01 of its potential returns per unit of risk. Property Perfect Public is currently generating about -0.06 per unit of risk. If you would invest  22.00  in Italian Thai Development Public on April 23, 2025 and sell it today you would lose (1.00) from holding Italian Thai Development Public or give up 4.55% of portfolio value over 90 days.

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

Italian Thai Development Publi  vs.  Property Perfect Public

Italian Thai Develop

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Italian Thai Development Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Italian Thai is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Property Perfect Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Property Perfect Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Italian Thai and Property Perfect

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

The idea behind Italian Thai Development Public and Property Perfect 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 CEOs Directory module to screen CEOs from public companies around the world.