Correlation Between DATANG INTL and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both DATANG INTL 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 DATANG INTL and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Thai Beverage Public, you can compare the effects of market volatilities on DATANG INTL 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 DATANG INTL with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Thai Beverage.
Diversification Opportunities for DATANG INTL and Thai Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DATANG and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and DATANG INTL 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 DATANG INTL POW 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 Public has no effect on the direction of DATANG INTL i.e., DATANG INTL and Thai Beverage go up and down completely randomly.
Pair Corralation between DATANG INTL and Thai Beverage
Assuming the 90 days trading horizon DATANG INTL is expected to generate 6.16 times less return on investment than Thai Beverage. In addition to that, DATANG INTL is 1.59 times more volatile than Thai Beverage Public. It trades about 0.02 of its total potential returns per unit of risk. Thai Beverage Public is currently generating about 0.17 per unit of volatility. If you would invest 35.00 in Thai Beverage Public on September 19, 2024 and sell it today you would earn a total of 3.00 from holding Thai Beverage Public or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. Thai Beverage Public
Performance |
| Timeline |
| DATANG INTL POW |
| Thai Beverage Public |
DATANG INTL and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Thai Beverage
The main advantage of trading using opposite DATANG INTL and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL 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.| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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