Correlation Between THAI BEVERAGE and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and OFFICE DEPOT 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 OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and OFFICE DEPOT, you can compare the effects of market volatilities on THAI BEVERAGE and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and OFFICE DEPOT.
Diversification Opportunities for THAI BEVERAGE and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between THAI and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and OFFICE DEPOT
If you would invest 34.00 in THAI BEVERAGE on September 3, 2024 and sell it today you would earn a total of 5.00 from holding THAI BEVERAGE or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. OFFICE DEPOT
Performance |
| Timeline |
| THAI BEVERAGE |
| OFFICE DEPOT |
THAI BEVERAGE and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and OFFICE DEPOT
The main advantage of trading using opposite THAI BEVERAGE and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| THAI BEVERAGE vs. Ramsay Health Care | THAI BEVERAGE vs. National Health Investors | THAI BEVERAGE vs. Air Transport Services | THAI BEVERAGE vs. Texas Roadhouse |
| OFFICE DEPOT vs. EHEALTH | OFFICE DEPOT vs. Ameriprise Financial | OFFICE DEPOT vs. CHIBA BANK | OFFICE DEPOT vs. MINCO SILVER |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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