Correlation Between PLAYTIKA HOLDING and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both PLAYTIKA HOLDING 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 PLAYTIKA HOLDING and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYTIKA HOLDING DL 01 and THAI BEVERAGE, you can compare the effects of market volatilities on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYTIKA HOLDING and THAI BEVERAGE.
Diversification Opportunities for PLAYTIKA HOLDING and THAI BEVERAGE
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PLAYTIKA and THAI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PLAYTIKA HOLDING DL 01 and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01 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 PLAYTIKA HOLDING i.e., PLAYTIKA HOLDING and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between PLAYTIKA HOLDING and THAI BEVERAGE
Assuming the 90 days horizon PLAYTIKA HOLDING DL 01 is expected to under-perform the THAI BEVERAGE. But the stock apears to be less risky and, when comparing its historical volatility, PLAYTIKA HOLDING DL 01 is 1.09 times less risky than THAI BEVERAGE. The stock trades about -0.15 of its potential returns per unit of risk. The THAI BEVERAGE is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in THAI BEVERAGE on September 19, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYTIKA HOLDING DL 01 vs. THAI BEVERAGE
Performance |
| Timeline |
| PLAYTIKA HOLDING |
| THAI BEVERAGE |
PLAYTIKA HOLDING and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYTIKA HOLDING and THAI BEVERAGE
The main advantage of trading using opposite PLAYTIKA HOLDING and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYTIKA HOLDING 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.| PLAYTIKA HOLDING vs. NEXON Co | PLAYTIKA HOLDING vs. Take Two Interactive Software | PLAYTIKA HOLDING vs. Superior Plus Corp | PLAYTIKA HOLDING vs. SIVERS SEMICONDUCTORS AB |
| THAI BEVERAGE vs. SERI INDUSTRIAL EO | THAI BEVERAGE vs. CVR Medical Corp | THAI BEVERAGE vs. ADRIATIC METALS LS 013355 | THAI BEVERAGE vs. MEDICAL FACILITIES NEW |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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