Correlation Between Stag Industrial and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both Stag Industrial 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 Stag Industrial and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and THAI BEVERAGE, you can compare the effects of market volatilities on Stag Industrial 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 Stag Industrial with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and THAI BEVERAGE.
Diversification Opportunities for Stag Industrial and THAI BEVERAGE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stag and THAI is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and Stag Industrial 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 Stag Industrial 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 has no effect on the direction of Stag Industrial i.e., Stag Industrial and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between Stag Industrial and THAI BEVERAGE
Assuming the 90 days trading horizon Stag Industrial is expected to under-perform the THAI BEVERAGE. But the stock apears to be less risky and, when comparing its historical volatility, Stag Industrial is 1.71 times less risky than THAI BEVERAGE. The stock trades about -0.05 of its potential returns per unit of risk. The THAI BEVERAGE 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 on October 18, 2024 and sell it today you would earn a total of 2.00 from holding THAI BEVERAGE or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. THAI BEVERAGE
Performance |
| Timeline |
| Stag Industrial |
| THAI BEVERAGE |
Stag Industrial and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and THAI BEVERAGE
The main advantage of trading using opposite Stag Industrial and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial 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.| Stag Industrial vs. SEALED AIR | Stag Industrial vs. Lery Seafood Group | Stag Industrial vs. WIZZ AIR HLDGUNSPADR4 | Stag Industrial vs. CHINA SOUTHN AIR H |
| THAI BEVERAGE vs. ELMOS SEMICONDUCTOR | THAI BEVERAGE vs. Stag Industrial | THAI BEVERAGE vs. IMPERIAL TOBACCO | THAI BEVERAGE vs. Elmos Semiconductor SE |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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