Correlation Between THARISA NON and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both THARISA NON 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 THARISA NON and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THARISA NON LIST and THAI BEVERAGE, you can compare the effects of market volatilities on THARISA NON 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 THARISA NON with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of THARISA NON and THAI BEVERAGE.
Diversification Opportunities for THARISA NON and THAI BEVERAGE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THARISA and THAI is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding THARISA NON LIST and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and THARISA NON 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 THARISA NON LIST 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 THARISA NON i.e., THARISA NON and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between THARISA NON and THAI BEVERAGE
Assuming the 90 days horizon THARISA NON LIST is expected to under-perform the THAI BEVERAGE. In addition to that, THARISA NON is 1.91 times more volatile than THAI BEVERAGE. It trades about -0.19 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 38.00 in THAI BEVERAGE on November 7, 2024 and sell it today you would lose (1.00) from holding THAI BEVERAGE or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
THARISA NON LIST vs. THAI BEVERAGE
Performance |
| Timeline |
| THARISA NON LIST |
| THAI BEVERAGE |
THARISA NON and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THARISA NON and THAI BEVERAGE
The main advantage of trading using opposite THARISA NON and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THARISA NON 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.| THARISA NON vs. STMicroelectronics NV | THARISA NON vs. STORE ELECTRONIC | THARISA NON vs. Cairo Communication SpA | THARISA NON vs. Schweizer Electronic AG |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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