Correlation Between LESLIES INC and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both LESLIES INC 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 LESLIES INC and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESLIES INC DL and Thai Beverage Public, you can compare the effects of market volatilities on LESLIES INC 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 LESLIES INC with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESLIES INC and Thai Beverage.
Diversification Opportunities for LESLIES INC and Thai Beverage
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LESLIES and Thai is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding LESLIES INC DL and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and LESLIES INC 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 LESLIES INC DL 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 Public has no effect on the direction of LESLIES INC i.e., LESLIES INC and Thai Beverage go up and down completely randomly.
Pair Corralation between LESLIES INC and Thai Beverage
Assuming the 90 days horizon LESLIES INC DL is expected to under-perform the Thai Beverage. In addition to that, LESLIES INC is 2.98 times more volatile than Thai Beverage Public. It trades about -0.03 of its total potential returns per unit of risk. Thai Beverage Public is currently generating about 0.21 per unit of volatility. If you would invest 35.00 in Thai Beverage Public on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Thai Beverage Public or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LESLIES INC DL vs. Thai Beverage Public
Performance |
| Timeline |
| LESLIES INC DL |
| Thai Beverage Public |
LESLIES INC and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESLIES INC and Thai Beverage
The main advantage of trading using opposite LESLIES INC and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESLIES INC 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.| LESLIES INC vs. Thai Beverage Public | LESLIES INC vs. CAL MAINE FOODS | LESLIES INC vs. YATRA ONLINE DL 0001 | LESLIES INC vs. Gruppo Mutuionline SpA |
| Thai Beverage vs. BII Railway Transportation | Thai Beverage vs. JD SPORTS FASH | Thai Beverage vs. Air Transport Services | Thai Beverage vs. TITANIUM TRANSPORTGROUP |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |