Correlation Between Marstons PLC and TH International
Can any of the company-specific risk be diversified away by investing in both Marstons PLC and TH International 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 Marstons PLC and TH International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marstons PLC and TH International Limited, you can compare the effects of market volatilities on Marstons PLC and TH International 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 Marstons PLC with a short position of TH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marstons PLC and TH International.
Diversification Opportunities for Marstons PLC and TH International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marstons and THCH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marstons PLC and TH International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TH International and Marstons PLC 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 Marstons PLC are associated (or correlated) with TH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TH International has no effect on the direction of Marstons PLC i.e., Marstons PLC and TH International go up and down completely randomly.
Pair Corralation between Marstons PLC and TH International
If you would invest 89.00 in TH International Limited on September 3, 2024 and sell it today you would lose (1.00) from holding TH International Limited or give up 1.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Marstons PLC vs. TH International Limited
Performance |
Timeline |
Marstons PLC |
TH International |
Marstons PLC and TH International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marstons PLC and TH International
The main advantage of trading using opposite Marstons PLC and TH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marstons PLC position performs unexpectedly, TH International 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 TH International will offset losses from the drop in TH International's long position.Marstons PLC vs. Marstons PLC | Marstons PLC vs. Bagger Daves Burger | Marstons PLC vs. Flanigans Enterprises | Marstons PLC vs. Ark Restaurants Corp |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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