Correlation Between THAI BEVERAGE and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and VARIOUS EATERIES 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 VARIOUS EATERIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and VARIOUS EATERIES LS, you can compare the effects of market volatilities on THAI BEVERAGE and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and VARIOUS EATERIES.
Diversification Opportunities for THAI BEVERAGE and VARIOUS EATERIES
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THAI and VARIOUS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and VARIOUS EATERIES
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 2.15 times more return on investment than VARIOUS EATERIES. However, THAI BEVERAGE is 2.15 times more volatile than VARIOUS EATERIES LS. It trades about 0.05 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.05 per unit of risk. If you would invest 16.00 in THAI BEVERAGE on October 16, 2024 and sell it today you would earn a total of 21.00 from holding THAI BEVERAGE or generate 131.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| THAI BEVERAGE |
| VARIOUS EATERIES |
THAI BEVERAGE and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and VARIOUS EATERIES
The main advantage of trading using opposite THAI BEVERAGE and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| THAI BEVERAGE vs. NIGHTINGALE HEALTH EO | THAI BEVERAGE vs. EPSILON HEALTHCARE LTD | THAI BEVERAGE vs. STMICROELECTRONICS | THAI BEVERAGE vs. EIDESVIK OFFSHORE NK |
| VARIOUS EATERIES vs. USWE SPORTS AB | VARIOUS EATERIES vs. THAI BEVERAGE | VARIOUS EATERIES vs. PLAYWAY SA ZY 10 | VARIOUS EATERIES vs. ANTA SPORTS PRODUCT |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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