Correlation Between PKSHA TECHNOLOGY and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and THAI BEVERAGE, you can compare the effects of market volatilities on PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and THAI BEVERAGE.
Diversification Opportunities for PKSHA TECHNOLOGY and THAI BEVERAGE
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKSHA and THAI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and THAI BEVERAGE
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the THAI BEVERAGE. In addition to that, PKSHA TECHNOLOGY is 1.34 times more volatile than THAI BEVERAGE. It trades about -0.03 of its total potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.07 per unit of volatility. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. THAI BEVERAGE
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| THAI BEVERAGE |
PKSHA TECHNOLOGY and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and THAI BEVERAGE
The main advantage of trading using opposite PKSHA TECHNOLOGY and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY 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.| PKSHA TECHNOLOGY vs. Siamgas And Petrochemicals | PKSHA TECHNOLOGY vs. INTERSHOP Communications Aktiengesellschaft | PKSHA TECHNOLOGY vs. AIR PRODCHEMICALS | PKSHA TECHNOLOGY vs. SHIN ETSU CHEMICAL |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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