Correlation Between THAI BEVERAGE and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and MOLSON COORS 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 MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on THAI BEVERAGE and MOLSON COORS 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 MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and MOLSON COORS.
Diversification Opportunities for THAI BEVERAGE and MOLSON COORS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between THAI and MOLSON is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON COORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and MOLSON COORS go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and MOLSON COORS
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 2.99 times less return on investment than MOLSON COORS. In addition to that, THAI BEVERAGE is 2.4 times more volatile than MOLSON RS BEVERAGE. It trades about 0.06 of its total potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.46 per unit of volatility. If you would invest 5,050 in MOLSON RS BEVERAGE on August 27, 2024 and sell it today you would earn a total of 550.00 from holding MOLSON RS BEVERAGE or generate 10.89% 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. MOLSON RS BEVERAGE
Performance |
| Timeline |
| THAI BEVERAGE |
| MOLSON RS BEVERAGE |
THAI BEVERAGE and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and MOLSON COORS
The main advantage of trading using opposite THAI BEVERAGE and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, MOLSON COORS 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 MOLSON COORS will offset losses from the drop in MOLSON COORS's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Microsoft |
| MOLSON COORS vs. LEGACY IRON ORE | MOLSON COORS vs. CosmoSteel Holdings Limited | MOLSON COORS vs. United States Steel | MOLSON COORS vs. ALGOMA STEEL GROUP |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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