Correlation Between THAI BEVERAGE and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and MICRONIC MYDATA 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 MICRONIC MYDATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and MICRONIC MYDATA, you can compare the effects of market volatilities on THAI BEVERAGE and MICRONIC MYDATA 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 MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and MICRONIC MYDATA.
Diversification Opportunities for THAI BEVERAGE and MICRONIC MYDATA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between THAI and MICRONIC is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and MICRONIC MYDATA
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.34 times more return on investment than MICRONIC MYDATA. However, THAI BEVERAGE is 1.34 times more volatile than MICRONIC MYDATA. It trades about 0.06 of its potential returns per unit of risk. MICRONIC MYDATA is currently generating about -0.15 per unit of risk. If you would invest 35.00 in THAI BEVERAGE on August 27, 2024 and sell it today you would earn a total of 1.00 from holding THAI BEVERAGE or generate 2.86% 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. MICRONIC MYDATA
Performance |
| Timeline |
| THAI BEVERAGE |
| MICRONIC MYDATA |
THAI BEVERAGE and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and MICRONIC MYDATA
The main advantage of trading using opposite THAI BEVERAGE and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Microsoft |
| MICRONIC MYDATA vs. The Boston Beer | MICRONIC MYDATA vs. Host Hotels Resorts | MICRONIC MYDATA vs. MIRAMAR HOTEL INV | MICRONIC MYDATA vs. COVIVIO HOTELS INH |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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