Correlation Between Internet Thailand and Interlink Telecom

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

Diversification Opportunities for Internet Thailand and Interlink Telecom

-0.38

Correlation Coefficient

Internet Thailand  Interlink Telecom

Very good diversification

The 3 months correlation between Internet and Interlink is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand Public and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public 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 Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of Internet Thailand i.e., Internet Thailand and Interlink Telecom go up and down completely randomly.

Pair Corralation between Internet Thailand and Interlink Telecom

Assuming the 90 days trading horizon Internet Thailand Public is expected to under-perform the Interlink Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Internet Thailand Public is 1.63 times less risky than Interlink Telecom. The stock trades about -0.03 of its potential returns per unit of risk. The Interlink Telecom Public is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  119.00  in Interlink Telecom Public on May 26, 2025 and sell it today you would earn a total of  31.00  from holding Interlink Telecom Public or generate 26.05% return on investment over 90 days.

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

Internet Thailand Public  vs.  Interlink Telecom Public

Internet Thailand Public

Risk-Adjusted Performance

Weakest

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.

Interlink Telecom Public

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interlink Telecom Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Interlink Telecom disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Internet Thailand and Interlink Telecom

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

The idea behind Internet Thailand Public and Interlink Telecom 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.