Correlation Between THAI BEVERAGE and Visa
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By analyzing existing cross correlation between THAI BEVERAGE and Visa Inc, you can compare the effects of market volatilities on THAI BEVERAGE and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Visa.
Diversification Opportunities for THAI BEVERAGE and Visa
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THAI and Visa is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Visa go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Visa
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 3.68 times more return on investment than Visa. However, THAI BEVERAGE is 3.68 times more volatile than Visa Inc. It trades about 0.2 of its potential returns per unit of risk. Visa Inc is currently generating about 0.18 per unit of risk. If you would invest 35.00 in THAI BEVERAGE on September 13, 2024 and sell it today you would earn a total of 4.00 from holding THAI BEVERAGE or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. Visa Inc
Performance |
| Timeline |
| THAI BEVERAGE |
| Visa Inc |
THAI BEVERAGE and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Visa
The main advantage of trading using opposite THAI BEVERAGE and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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