Correlation Between THAI BEVERAGE and Bank Of
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Bank Of 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 Bank Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and The Bank of, you can compare the effects of market volatilities on THAI BEVERAGE and Bank Of 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 Bank Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Bank Of.
Diversification Opportunities for THAI BEVERAGE and Bank Of
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THAI and Bank is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Bank 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 Bank Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Bank has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Bank Of go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Bank Of
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 3.54 times more return on investment than Bank Of. However, THAI BEVERAGE is 3.54 times more volatile than The Bank of. It trades about 0.06 of its potential returns per unit of risk. The Bank of is currently generating about 0.1 per unit of risk. If you would invest 15.00 in THAI BEVERAGE on September 12, 2024 and sell it today you would earn a total of 23.00 from holding THAI BEVERAGE or generate 153.33% 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. The Bank of
Performance |
| Timeline |
| THAI BEVERAGE |
| The Bank |
THAI BEVERAGE and Bank Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Bank Of
The main advantage of trading using opposite THAI BEVERAGE and Bank Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Bank Of 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 Bank Of will offset losses from the drop in Bank Of's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
| Bank Of vs. ULTRA CLEAN HLDGS | Bank Of vs. THAI BEVERAGE | Bank Of vs. Thai Beverage Public | Bank Of vs. Perseus Mining Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |