Correlation Between THAI BEVERAGE and AMPLITUDE SURGIC
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and AMPLITUDE SURGIC 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 THAI BEVERAGE and AMPLITUDE SURGIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and AMPLITUDE SURGIC EO, you can compare the effects of market volatilities on THAI BEVERAGE and AMPLITUDE SURGIC 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 THAI BEVERAGE with a short position of AMPLITUDE SURGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and AMPLITUDE SURGIC.
Diversification Opportunities for THAI BEVERAGE and AMPLITUDE SURGIC
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THAI and AMPLITUDE is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and AMPLITUDE SURGIC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPLITUDE SURGIC and THAI BEVERAGE 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 THAI BEVERAGE are associated (or correlated) with AMPLITUDE SURGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPLITUDE SURGIC has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and AMPLITUDE SURGIC go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and AMPLITUDE SURGIC
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.0 times more return on investment than AMPLITUDE SURGIC. However, THAI BEVERAGE is 1.0 times less risky than AMPLITUDE SURGIC. It trades about 0.26 of its potential returns per unit of risk. AMPLITUDE SURGIC EO is currently generating about 0.13 per unit of risk. If you would invest 35.00 in THAI BEVERAGE on September 5, 2024 and sell it today you would earn a total of 5.00 from holding THAI BEVERAGE or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
THAI BEVERAGE vs. AMPLITUDE SURGIC EO
Performance |
| Timeline |
| THAI BEVERAGE |
| AMPLITUDE SURGIC |
THAI BEVERAGE and AMPLITUDE SURGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and AMPLITUDE SURGIC
The main advantage of trading using opposite THAI BEVERAGE and AMPLITUDE SURGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, AMPLITUDE SURGIC 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 AMPLITUDE SURGIC will offset losses from the drop in AMPLITUDE SURGIC's long position.| THAI BEVERAGE vs. TOTAL GABON | THAI BEVERAGE vs. Walgreens Boots Alliance | THAI BEVERAGE vs. Peak Resources Limited |
| AMPLITUDE SURGIC vs. EEDUCATION ALBERT AB | AMPLITUDE SURGIC vs. CAREER EDUCATION | AMPLITUDE SURGIC vs. American Public Education | AMPLITUDE SURGIC vs. Mobilezone 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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