Correlation Between THAI BEVERAGE and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Jacquet Metal Service, you can compare the effects of market volatilities on THAI BEVERAGE and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Jacquet Metal.
Diversification Opportunities for THAI BEVERAGE and Jacquet Metal
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THAI and Jacquet is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Jacquet Metal go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Jacquet Metal
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 0.94 times more return on investment than Jacquet Metal. However, THAI BEVERAGE is 1.06 times less risky than Jacquet Metal. It trades about -0.07 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.33 per unit of risk. If you would invest 37.00 in THAI BEVERAGE on October 30, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. Jacquet Metal Service
Performance |
| Timeline |
| THAI BEVERAGE |
| Jacquet Metal Service |
THAI BEVERAGE and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Jacquet Metal
The main advantage of trading using opposite THAI BEVERAGE and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| THAI BEVERAGE vs. MOVIE GAMES SA | THAI BEVERAGE vs. TAL Education Group | THAI BEVERAGE vs. TEN SQUARE GAMES | THAI BEVERAGE vs. EEDUCATION ALBERT AB |
| Jacquet Metal vs. Ringmetall SE | Jacquet Metal vs. GALENA MINING LTD | Jacquet Metal vs. PKSHA TECHNOLOGY INC | Jacquet Metal vs. De Grey 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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