Correlation Between AMCON Distributing and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Thai Beverage PCL, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Thai Beverage.
Diversification Opportunities for AMCON Distributing and Thai Beverage
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMCON and Thai is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Thai Beverage PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage PCL and AMCON Distributing 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 AMCON Distributing 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 PCL has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Thai Beverage go up and down completely randomly.
Pair Corralation between AMCON Distributing and Thai Beverage
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.94 times more return on investment than Thai Beverage. However, AMCON Distributing is 1.94 times more volatile than Thai Beverage PCL. It trades about 0.0 of its potential returns per unit of risk. Thai Beverage PCL is currently generating about -0.07 per unit of risk. If you would invest 16,738 in AMCON Distributing on November 27, 2024 and sell it today you would lose (3,638) from holding AMCON Distributing or give up 21.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.52% |
| Values | Daily Returns |
AMCON Distributing vs. Thai Beverage PCL
Performance |
| Timeline |
| AMCON Distributing |
| Thai Beverage PCL |
AMCON Distributing and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Thai Beverage
The main advantage of trading using opposite AMCON Distributing and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| Thai Beverage vs. Andrew Peller Limited | Thai Beverage vs. Aristocrat Group Corp | Thai Beverage vs. Iconic Brands | Thai Beverage vs. Naked Wines plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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