Correlation Between United Breweries and Internet Thailand
Can any of the company-specific risk be diversified away by investing in both United Breweries and Internet Thailand 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 United Breweries and Internet Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Breweries Co and Internet Thailand PCL, you can compare the effects of market volatilities on United Breweries and Internet Thailand 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 United Breweries with a short position of Internet Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and Internet Thailand.
Diversification Opportunities for United Breweries and Internet Thailand
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Internet is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Co and Internet Thailand PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand PCL and United Breweries 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 United Breweries Co are associated (or correlated) with Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand PCL has no effect on the direction of United Breweries i.e., United Breweries and Internet Thailand go up and down completely randomly.
Pair Corralation between United Breweries and Internet Thailand
Assuming the 90 days trading horizon United Breweries Co is expected to generate 0.34 times more return on investment than Internet Thailand. However, United Breweries Co is 2.96 times less risky than Internet Thailand. It trades about 0.26 of its potential returns per unit of risk. Internet Thailand PCL is currently generating about 0.02 per unit of risk. If you would invest 1,110 in United Breweries Co on November 27, 2024 and sell it today you would earn a total of 100.00 from holding United Breweries Co or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
United Breweries Co vs. Internet Thailand PCL
Performance |
| Timeline |
| United Breweries |
| Internet Thailand PCL |
United Breweries and Internet Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and Internet Thailand
The main advantage of trading using opposite United Breweries and Internet Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries position performs unexpectedly, Internet Thailand 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 Internet Thailand will offset losses from the drop in Internet Thailand's long position.| United Breweries vs. CORNISH METALS INC | United Breweries vs. ADRIATIC METALS LS 013355 | United Breweries vs. Perseus Mining Limited | United Breweries vs. Tower One Wireless |
| Internet Thailand vs. CITY OFFICE REIT | Internet Thailand vs. KENEDIX OFFICE INV | Internet Thailand vs. PLAYTECH | Internet Thailand vs. MAVEN WIRELESS SWEDEN |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |