Correlation Between THAI BEVERAGE and Zoom Video
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Zoom Video Communications, you can compare the effects of market volatilities on THAI BEVERAGE and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Zoom Video.
Diversification Opportunities for THAI BEVERAGE and Zoom Video
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between THAI and Zoom is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Zoom Video go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Zoom Video
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 2.23 times more return on investment than Zoom Video. However, THAI BEVERAGE is 2.23 times more volatile than Zoom Video Communications. It trades about 0.06 of its potential returns per unit of risk. Zoom Video Communications is currently generating about 0.02 per unit of risk. If you would invest 15.00 in THAI BEVERAGE on September 3, 2024 and sell it today you would earn a total of 24.00 from holding THAI BEVERAGE or generate 160.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. Zoom Video Communications
Performance |
| Timeline |
| THAI BEVERAGE |
| Zoom Video Communications |
THAI BEVERAGE and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Zoom Video
The main advantage of trading using opposite THAI BEVERAGE and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| THAI BEVERAGE vs. Ramsay Health Care | THAI BEVERAGE vs. National Health Investors | THAI BEVERAGE vs. Air Transport Services | THAI BEVERAGE vs. Texas Roadhouse |
| Zoom Video vs. Nomad Foods | Zoom Video vs. CAL MAINE FOODS | Zoom Video vs. ADRIATIC METALS LS 013355 | Zoom Video vs. THAI BEVERAGE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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