Correlation Between Know Labs and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Know Labs 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 Know Labs and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Know Labs and Thai Beverage PCL, you can compare the effects of market volatilities on Know Labs 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 Know Labs with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know Labs and Thai Beverage.
Diversification Opportunities for Know Labs and Thai Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Know and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Know Labs 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 Know Labs 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 Know Labs 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 Know Labs i.e., Know Labs and Thai Beverage go up and down completely randomly.
Pair Corralation between Know Labs and Thai Beverage
Considering the 90-day investment horizon Know Labs is expected to under-perform the Thai Beverage. In addition to that, Know Labs is 3.7 times more volatile than Thai Beverage PCL. It trades about -0.02 of its total potential returns per unit of risk. Thai Beverage PCL is currently generating about -0.06 per unit of volatility. If you would invest 5,200 in Thai Beverage PCL on August 28, 2024 and sell it today you would lose (1,833) from holding Thai Beverage PCL or give up 35.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.08% |
| Values | Daily Returns |
Know Labs vs. Thai Beverage PCL
Performance |
| Timeline |
| Know Labs |
| Thai Beverage PCL |
Know Labs and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Know Labs and Thai Beverage
The main advantage of trading using opposite Know Labs and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know Labs 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.| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
| Thai Beverage vs. Diageo PLC ADR | Thai Beverage vs. Constellation Brands Class | Thai Beverage vs. Morningstar Unconstrained Allocation | Thai Beverage vs. SEI Investments |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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