Correlation Between TROPHY GAMES and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both TROPHY 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 TROPHY 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 TROPHY GAMES DEV and THAI BEVERAGE, you can compare the effects of market volatilities on TROPHY 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 TROPHY GAMES with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and THAI BEVERAGE.
Diversification Opportunities for TROPHY GAMES and THAI BEVERAGE
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and THAI is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and TROPHY 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 TROPHY GAMES DEV 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 TROPHY GAMES i.e., TROPHY GAMES and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between TROPHY GAMES and THAI BEVERAGE
Assuming the 90 days horizon TROPHY GAMES DEV is expected to under-perform the THAI BEVERAGE. In addition to that, TROPHY GAMES is 1.11 times more volatile than THAI BEVERAGE. It trades about -0.11 of its total potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.22 per unit of volatility. If you would invest 35.00 in THAI BEVERAGE on September 4, 2024 and sell it today you would earn a total of 4.00 from holding THAI BEVERAGE or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. THAI BEVERAGE
Performance |
| Timeline |
| TROPHY GAMES DEV |
| THAI BEVERAGE |
TROPHY GAMES and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and THAI BEVERAGE
The main advantage of trading using opposite TROPHY GAMES and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY 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.| TROPHY GAMES vs. ON SEMICONDUCTOR | TROPHY GAMES vs. MAGNUM MINING EXP | TROPHY GAMES vs. AOI Electronics Co | TROPHY GAMES vs. Richardson Electronics |
| THAI BEVERAGE vs. TOTAL GABON | THAI BEVERAGE vs. Walgreens Boots Alliance | THAI BEVERAGE vs. Peak Resources Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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