Correlation Between MOVIE GAMES and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and THAI BEVERAGE, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and THAI BEVERAGE.
Diversification Opportunities for MOVIE GAMES and THAI BEVERAGE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOVIE and THAI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and MOVIE GAMES 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 MOVIE GAMES SA 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 has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between MOVIE GAMES and THAI BEVERAGE
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 2.71 times more return on investment than THAI BEVERAGE. However, MOVIE GAMES is 2.71 times more volatile than THAI BEVERAGE. It trades about 0.19 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about -0.07 per unit of risk. If you would invest 351.00 in MOVIE GAMES SA on November 7, 2024 and sell it today you would earn a total of 63.00 from holding MOVIE GAMES SA or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MOVIE GAMES SA vs. THAI BEVERAGE
Performance |
| Timeline |
| MOVIE GAMES SA |
| THAI BEVERAGE |
MOVIE GAMES and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and THAI BEVERAGE
The main advantage of trading using opposite MOVIE GAMES and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. PACIFIC ONLINE | MOVIE GAMES vs. Singapore Reinsurance | MOVIE GAMES vs. Zurich Insurance Group | MOVIE GAMES vs. Direct Line Insurance |
| THAI BEVERAGE vs. ADRIATIC METALS LS 013355 | THAI BEVERAGE vs. De Grey Mining | THAI BEVERAGE vs. FAST RETAIL ADR | THAI BEVERAGE vs. East Africa Metals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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