Correlation Between WESANA HEALTH and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and THAI BEVERAGE, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and THAI BEVERAGE.
Diversification Opportunities for WESANA HEALTH and THAI BEVERAGE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WESANA and THAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between WESANA HEALTH and THAI BEVERAGE
If you would invest 0.15 in WESANA HEALTH HOLD on November 5, 2024 and sell it today you would earn a total of 0.00 from holding WESANA HEALTH HOLD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. THAI BEVERAGE
Performance |
| Timeline |
| WESANA HEALTH HOLD |
| THAI BEVERAGE |
WESANA HEALTH and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESANA HEALTH and THAI BEVERAGE
The main advantage of trading using opposite WESANA HEALTH and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.| WESANA HEALTH vs. Novo Nordisk AS | WESANA HEALTH vs. CSL LTD SPONADR | WESANA HEALTH vs. Mercedes Benz Group AG | WESANA HEALTH vs. Vertex Pharmaceuticals Incorporated |
| THAI BEVERAGE vs. ANGANG STEEL H | THAI BEVERAGE vs. CALTAGIRONE EDITORE | THAI BEVERAGE vs. CSSC Offshore Marine | THAI BEVERAGE vs. SBM OFFSHORE |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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