Correlation Between THAI BEVERAGE and JLT MOBILE
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and JLT MOBILE 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 JLT MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and JLT MOBILE PUTER, you can compare the effects of market volatilities on THAI BEVERAGE and JLT MOBILE 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 JLT MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and JLT MOBILE.
Diversification Opportunities for THAI BEVERAGE and JLT MOBILE
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THAI and JLT is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and JLT MOBILE PUTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT MOBILE PUTER 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 JLT MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT MOBILE PUTER has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and JLT MOBILE go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and JLT MOBILE
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.94 times more return on investment than JLT MOBILE. However, THAI BEVERAGE is 1.94 times more volatile than JLT MOBILE PUTER. It trades about 0.08 of its potential returns per unit of risk. JLT MOBILE PUTER is currently generating about -0.05 per unit of risk. If you would invest 18.00 in THAI BEVERAGE on September 4, 2024 and sell it today you would earn a total of 21.00 from holding THAI BEVERAGE or generate 116.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. JLT MOBILE PUTER
Performance |
| Timeline |
| THAI BEVERAGE |
| JLT MOBILE PUTER |
THAI BEVERAGE and JLT MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and JLT MOBILE
The main advantage of trading using opposite THAI BEVERAGE and JLT MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, JLT MOBILE 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 JLT MOBILE will offset losses from the drop in JLT MOBILE's long position.| THAI BEVERAGE vs. TOTAL GABON | THAI BEVERAGE vs. Walgreens Boots Alliance | THAI BEVERAGE vs. Peak Resources Limited |
| JLT MOBILE vs. Nordic Semiconductor ASA | JLT MOBILE vs. TOREX SEMICONDUCTOR LTD | JLT MOBILE vs. Salesforce | JLT MOBILE vs. BE Semiconductor Industries |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |