Correlation Between CN MODERN and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both CN MODERN and Thai Beverage 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 CN MODERN and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and Thai Beverage Public, you can compare the effects of market volatilities on CN MODERN and Thai Beverage 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 CN MODERN with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and Thai Beverage.
Diversification Opportunities for CN MODERN and Thai Beverage
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 07M and Thai is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage Public has no effect on the direction of CN MODERN i.e., CN MODERN and Thai Beverage go up and down completely randomly.
Pair Corralation between CN MODERN and Thai Beverage
Assuming the 90 days trading horizon CN MODERN DAIRY is expected to generate 0.87 times more return on investment than Thai Beverage. However, CN MODERN DAIRY is 1.15 times less risky than Thai Beverage. It trades about 0.02 of its potential returns per unit of risk. Thai Beverage Public is currently generating about -0.02 per unit of risk. If you would invest 10.00 in CN MODERN DAIRY on October 25, 2024 and sell it today you would earn a total of 0.00 from holding CN MODERN DAIRY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN MODERN DAIRY vs. Thai Beverage Public
Performance |
| Timeline |
| CN MODERN DAIRY |
| Thai Beverage Public |
CN MODERN and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and Thai Beverage
The main advantage of trading using opposite CN MODERN and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| CN MODERN vs. TRADEDOUBLER AB SK | CN MODERN vs. SIDETRADE EO 1 | CN MODERN vs. FLOW TRADERS LTD | CN MODERN vs. Corporate Office Properties |
| Thai Beverage vs. DALATA HOTEL | Thai Beverage vs. Park Hotels Resorts | Thai Beverage vs. SBM OFFSHORE | Thai Beverage vs. AIR PRODCHEMICALS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |