Correlation Between THAI BEVERAGE and Stryker
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Stryker 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 Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Stryker, you can compare the effects of market volatilities on THAI BEVERAGE and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Stryker.
Diversification Opportunities for THAI BEVERAGE and Stryker
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between THAI and Stryker is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Stryker go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Stryker
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 3.96 times more return on investment than Stryker. However, THAI BEVERAGE is 3.96 times more volatile than Stryker. It trades about 0.06 of its potential returns per unit of risk. Stryker is currently generating about 0.08 per unit of risk. If you would invest 15.00 in THAI BEVERAGE on November 5, 2024 and sell it today you would earn a total of 22.00 from holding THAI BEVERAGE or generate 146.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
THAI BEVERAGE vs. Stryker
Performance |
| Timeline |
| THAI BEVERAGE |
| Stryker |
THAI BEVERAGE and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Stryker
The main advantage of trading using opposite THAI BEVERAGE and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
| Stryker vs. ARDAGH METAL PACDL 0001 | Stryker vs. Perseus Mining Limited | Stryker vs. UNIVERSAL MUSIC GROUP | Stryker vs. FUYO GENERAL LEASE |
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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