Correlation Between AEON Thana and RB FOOD
Can any of the company-specific risk be diversified away by investing in both AEON Thana and RB FOOD 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 AEON Thana and RB FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON Thana Sinsap and RB FOOD SUPPLY, you can compare the effects of market volatilities on AEON Thana and RB FOOD 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 AEON Thana with a short position of RB FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and RB FOOD.
Diversification Opportunities for AEON Thana and RB FOOD
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AEON and RBF-R is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and RB FOOD SUPPLY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB FOOD SUPPLY and AEON Thana 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 AEON Thana Sinsap are associated (or correlated) with RB FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB FOOD SUPPLY has no effect on the direction of AEON Thana i.e., AEON Thana and RB FOOD go up and down completely randomly.
Pair Corralation between AEON Thana and RB FOOD
Assuming the 90 days trading horizon AEON Thana Sinsap is expected to generate 0.49 times more return on investment than RB FOOD. However, AEON Thana Sinsap is 2.06 times less risky than RB FOOD. It trades about -0.02 of its potential returns per unit of risk. RB FOOD SUPPLY is currently generating about -0.02 per unit of risk. If you would invest 14,361 in AEON Thana Sinsap on September 5, 2024 and sell it today you would lose (1,861) from holding AEON Thana Sinsap or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON Thana Sinsap vs. RB FOOD SUPPLY
Performance |
| Timeline |
| AEON Thana Sinsap |
| RB FOOD SUPPLY |
AEON Thana and RB FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON Thana and RB FOOD
The main advantage of trading using opposite AEON Thana and RB FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON Thana position performs unexpectedly, RB FOOD 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 RB FOOD will offset losses from the drop in RB FOOD's long position.| AEON Thana vs. Thai Steel Cable | AEON Thana vs. Tropical Canning Public | AEON Thana vs. RB Food Supply | AEON Thana vs. Eureka Design Public |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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