Correlation Between Pure Storage and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Pure Storage 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 Pure Storage and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Storage and Thai Beverage Public, you can compare the effects of market volatilities on Pure Storage 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 Pure Storage with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and Thai Beverage.
Diversification Opportunities for Pure Storage and Thai Beverage
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pure and Thai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage 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 Pure Storage 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 Pure Storage 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 Pure Storage i.e., Pure Storage and Thai Beverage go up and down completely randomly.
Pair Corralation between Pure Storage and Thai Beverage
Assuming the 90 days horizon Pure Storage is expected to generate 1.31 times less return on investment than Thai Beverage. But when comparing it to its historical volatility, Pure Storage is 1.28 times less risky than Thai Beverage. It trades about 0.06 of its potential returns per unit of risk. Thai Beverage Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Thai Beverage Public on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Thai Beverage Public or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pure Storage vs. Thai Beverage Public
Performance |
| Timeline |
| Pure Storage |
| Thai Beverage Public |
Pure Storage and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Storage and Thai Beverage
The main advantage of trading using opposite Pure Storage and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage 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.| Pure Storage vs. Superior Plus Corp | Pure Storage vs. NMI Holdings | Pure Storage vs. Origin Agritech | Pure Storage vs. SIVERS SEMICONDUCTORS AB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |