Correlation Between THAI BEVERAGE and KION Group
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and KION Group 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 KION Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and KION Group AG, you can compare the effects of market volatilities on THAI BEVERAGE and KION Group 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 KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and KION Group.
Diversification Opportunities for THAI BEVERAGE and KION Group
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between THAI and KION is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG 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 KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and KION Group go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and KION Group
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.01 times more return on investment than KION Group. However, THAI BEVERAGE is 1.01 times more volatile than KION Group AG. It trades about 0.15 of its potential returns per unit of risk. KION Group AG is currently generating about -0.15 per unit of risk. If you would invest 35.00 in THAI BEVERAGE on August 29, 2024 and sell it today you would earn a total of 3.00 from holding THAI BEVERAGE or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. KION Group AG
Performance |
| Timeline |
| THAI BEVERAGE |
| KION Group AG |
THAI BEVERAGE and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and KION Group
The main advantage of trading using opposite THAI BEVERAGE and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Microsoft | THAI BEVERAGE vs. Microsoft |
| KION Group vs. EAST SIDE GAMES | KION Group vs. Townsquare Media | KION Group vs. Hollywood Bowl Group | KION Group vs. Ubisoft Entertainment SA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |