Correlation Between THAI BEVERAGE and ADYEN NV
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and ADYEN NV 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 ADYEN NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and ADYEN NV UNSPADR001, you can compare the effects of market volatilities on THAI BEVERAGE and ADYEN NV 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 ADYEN NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and ADYEN NV.
Diversification Opportunities for THAI BEVERAGE and ADYEN NV
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between THAI and ADYEN is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and ADYEN NV UNSPADR001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADYEN NV UNSPADR001 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 ADYEN NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADYEN NV UNSPADR001 has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and ADYEN NV go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and ADYEN NV
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 3.55 times less return on investment than ADYEN NV. But when comparing it to its historical volatility, THAI BEVERAGE is 1.52 times less risky than ADYEN NV. It trades about 0.05 of its potential returns per unit of risk. ADYEN NV UNSPADR001 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,220 in ADYEN NV UNSPADR001 on November 7, 2024 and sell it today you would earn a total of 290.00 from holding ADYEN NV UNSPADR001 or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. ADYEN NV UNSPADR001
Performance |
| Timeline |
| THAI BEVERAGE |
| ADYEN NV UNSPADR001 |
THAI BEVERAGE and ADYEN NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and ADYEN NV
The main advantage of trading using opposite THAI BEVERAGE and ADYEN NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, ADYEN NV 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 ADYEN NV will offset losses from the drop in ADYEN NV's long position.| THAI BEVERAGE vs. CENTURIA OFFICE REIT | THAI BEVERAGE vs. Aedas Homes SA | THAI BEVERAGE vs. OFFICE DEPOT | THAI BEVERAGE vs. ALBIS LEASING 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |