Correlation Between Nexstar Media and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Nexstar Media 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 Nexstar Media and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Media Group and Thai Beverage Public, you can compare the effects of market volatilities on Nexstar Media 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 Nexstar Media with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and Thai Beverage.
Diversification Opportunities for Nexstar Media and Thai Beverage
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nexstar and Thai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group 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 Nexstar Media 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 Nexstar Media Group 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 Nexstar Media i.e., Nexstar Media and Thai Beverage go up and down completely randomly.
Pair Corralation between Nexstar Media and Thai Beverage
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the Thai Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Nexstar Media Group is 1.82 times less risky than Thai Beverage. The stock trades about -0.04 of its potential returns per unit of risk. The Thai Beverage Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Thai Beverage Public on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Thai Beverage Public or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. Thai Beverage Public
Performance |
| Timeline |
| Nexstar Media Group |
| Thai Beverage Public |
Nexstar Media and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and Thai Beverage
The main advantage of trading using opposite Nexstar Media and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media 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.| Nexstar Media vs. Easy Software AG | Nexstar Media vs. Lendlease Group | Nexstar Media vs. Unity Software | Nexstar Media vs. GBS Software AG |
| Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Constellation Brands | Thai Beverage vs. Treasury Wine Estates | Thai Beverage vs. Hawesko Holding AG |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |