Correlation Between 24SEVENOFFICE GROUP and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and THAI BEVERAGE, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and THAI BEVERAGE.
Diversification Opportunities for 24SEVENOFFICE GROUP and THAI BEVERAGE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 24SEVENOFFICE and THAI is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and THAI BEVERAGE
Assuming the 90 days horizon 24SEVENOFFICE GROUP is expected to generate 2.03 times less return on investment than THAI BEVERAGE. But when comparing it to its historical volatility, 24SEVENOFFICE GROUP AB is 2.05 times less risky than THAI BEVERAGE. It trades about 0.07 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 36.00 in THAI BEVERAGE on September 24, 2024 and sell it today you would earn a total of 1.00 from holding THAI BEVERAGE or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. THAI BEVERAGE
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| THAI BEVERAGE |
24SEVENOFFICE GROUP and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and THAI BEVERAGE
The main advantage of trading using opposite 24SEVENOFFICE GROUP and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. Salesforce | 24SEVENOFFICE GROUP vs. SAP SE | 24SEVENOFFICE GROUP vs. Uber Technologies | 24SEVENOFFICE GROUP vs. Nemetschek AG ON |
| THAI BEVERAGE vs. Scandinavian Tobacco Group | THAI BEVERAGE vs. PKSHA TECHNOLOGY INC | THAI BEVERAGE vs. 24SEVENOFFICE GROUP AB | THAI BEVERAGE vs. Uber Technologies |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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