Correlation Between National Beverage and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both National Beverage and Banpu PCL 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 National Beverage and Banpu PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and Banpu PCL ADR, you can compare the effects of market volatilities on National Beverage and Banpu PCL 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 National Beverage with a short position of Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Banpu PCL.
Diversification Opportunities for National Beverage and Banpu PCL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Banpu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR and National Beverage 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 National Beverage Corp are associated (or correlated) with Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of National Beverage i.e., National Beverage and Banpu PCL go up and down completely randomly.
Pair Corralation between National Beverage and Banpu PCL
If you would invest 4,519 in National Beverage Corp on August 31, 2024 and sell it today you would earn a total of 441.00 from holding National Beverage Corp or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
National Beverage Corp vs. Banpu PCL ADR
Performance |
| Timeline |
| National Beverage Corp |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Beverage and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Banpu PCL
The main advantage of trading using opposite National Beverage and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
| Banpu PCL vs. TFI International | Banpu PCL vs. Maiden Holdings | Banpu PCL vs. Employers Holdings | Banpu PCL vs. Tencent Music Entertainment |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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