Correlation Between Unique Mining and CIMB Thai

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

By analyzing existing cross correlation between Unique Mining Services and CIMB Thai Bank, you can compare the effects of market volatilities on Unique Mining and CIMB Thai 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 Unique Mining with a short position of CIMB Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unique Mining and CIMB Thai.

Diversification Opportunities for Unique Mining and CIMB Thai

0.82

Correlation Coefficient

Unique Mining  CIMB Thai

Very poor diversification

The 3 months correlation between Unique and CIMB is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Unique Mining Services and CIMB Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMB Thai Bank and Unique Mining 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 Unique Mining Services are associated (or correlated) with CIMB Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMB Thai Bank has no effect on the direction of Unique Mining i.e., Unique Mining and CIMB Thai go up and down completely randomly.

Pair Corralation between Unique Mining and CIMB Thai

Assuming the 90 days trading horizon Unique Mining Services is expected to generate 1.44 times more return on investment than CIMB Thai. However, Unique Mining is 1.44 times more volatile than CIMB Thai Bank. It trades about -0.04 of its potential returns per unit of risk. CIMB Thai Bank is currently generating about -0.18 per unit of risk. If you would invest  32.00  in Unique Mining Services on April 24, 2025 and sell it today you would lose (6.00) from holding Unique Mining Services or give up 18.75% of portfolio value over 90 days.

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

Unique Mining Services  vs.  CIMB Thai Bank

Unique Mining Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unique Mining Services 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 basic indicators 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.

CIMB Thai Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIMB Thai Bank 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 somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Unique Mining and CIMB Thai

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

The idea behind Unique Mining Services and CIMB Thai Bank 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.