Correlation Between THAI BEVERAGE and Orsted AS
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Orsted AS 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 Orsted AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Orsted AS, you can compare the effects of market volatilities on THAI BEVERAGE and Orsted AS 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 Orsted AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Orsted AS.
Diversification Opportunities for THAI BEVERAGE and Orsted AS
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THAI and Orsted is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Orsted AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orsted AS 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 Orsted AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orsted AS has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Orsted AS go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Orsted AS
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 0.5 times more return on investment than Orsted AS. However, THAI BEVERAGE is 1.99 times less risky than Orsted AS. It trades about -0.08 of its potential returns per unit of risk. Orsted AS is currently generating about -0.28 per unit of risk. If you would invest 37.00 in THAI BEVERAGE on October 24, 2024 and sell it today you would lose (1.00) from holding THAI BEVERAGE or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. Orsted AS
Performance |
| Timeline |
| THAI BEVERAGE |
| Orsted AS |
THAI BEVERAGE and Orsted AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Orsted AS
The main advantage of trading using opposite THAI BEVERAGE and Orsted AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Orsted AS 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 Orsted AS will offset losses from the drop in Orsted AS's long position.| THAI BEVERAGE vs. Compugroup Medical SE | THAI BEVERAGE vs. UNITED RENTALS | THAI BEVERAGE vs. Apollo Medical Holdings | THAI BEVERAGE vs. CVR Medical Corp |
| Orsted AS vs. Ares Management Corp | Orsted AS vs. Cleanaway Waste Management | Orsted AS vs. Kingdee International Software | Orsted AS vs. USU Software 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |