Correlation Between THAI BEVERAGE and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs, you can compare the effects of market volatilities on THAI BEVERAGE and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Goldman Sachs.
Diversification Opportunities for THAI BEVERAGE and Goldman Sachs
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between THAI and Goldman is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Goldman Sachs go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Goldman Sachs
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.32 times more return on investment than Goldman Sachs. However, THAI BEVERAGE is 1.32 times more volatile than The Goldman Sachs. It trades about 0.01 of its potential returns per unit of risk. The Goldman Sachs is currently generating about -0.08 per unit of risk. If you would invest 36.00 in THAI BEVERAGE on December 3, 2024 and sell it today you would earn a total of 0.00 from holding THAI BEVERAGE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. The Goldman Sachs
Performance |
| Timeline |
| THAI BEVERAGE |
| Goldman Sachs |
THAI BEVERAGE and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Goldman Sachs
The main advantage of trading using opposite THAI BEVERAGE and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| THAI BEVERAGE vs. HK Electric Investments | THAI BEVERAGE vs. AGNC Investment Corp | THAI BEVERAGE vs. Diversified Healthcare Trust | THAI BEVERAGE vs. Southwest Airlines Co |
| Goldman Sachs vs. Globex Mining Enterprises | Goldman Sachs vs. STORAGEVAULT CANADA INC | Goldman Sachs vs. DATANG INTL POW | Goldman Sachs vs. GOLDQUEST MINING |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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