Correlation Between THAI BEVERAGE and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Sixt Leasing 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 Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Sixt Leasing SE, you can compare the effects of market volatilities on THAI BEVERAGE and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Sixt Leasing.
Diversification Opportunities for THAI BEVERAGE and Sixt Leasing
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THAI and Sixt is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Sixt Leasing go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Sixt Leasing
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 2.67 times more return on investment than Sixt Leasing. However, THAI BEVERAGE is 2.67 times more volatile than Sixt Leasing SE. It trades about 0.06 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.02 per unit of risk. If you would invest 20.00 in THAI BEVERAGE on September 1, 2024 and sell it today you would earn a total of 19.00 from holding THAI BEVERAGE or generate 95.0% 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. Sixt Leasing SE
Performance |
| Timeline |
| THAI BEVERAGE |
| Sixt Leasing SE |
THAI BEVERAGE and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Sixt Leasing
The main advantage of trading using opposite THAI BEVERAGE and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| THAI BEVERAGE vs. RYU Apparel | THAI BEVERAGE vs. SPORTING | THAI BEVERAGE vs. Big 5 Sporting | THAI BEVERAGE vs. COLUMBIA SPORTSWEAR |
| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |