Correlation Between THAI BEVERAGE and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and TRADEDOUBLER 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 TRADEDOUBLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and TRADEDOUBLER AB SK, you can compare the effects of market volatilities on THAI BEVERAGE and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and TRADEDOUBLER.
Diversification Opportunities for THAI BEVERAGE and TRADEDOUBLER
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between THAI and TRADEDOUBLER is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and TRADEDOUBLER
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 1.41 times more return on investment than TRADEDOUBLER. However, THAI BEVERAGE is 1.41 times more volatile than TRADEDOUBLER AB SK. It trades about 0.07 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about -0.01 per unit of risk. If you would invest 19.00 in THAI BEVERAGE on September 14, 2024 and sell it today you would earn a total of 19.00 from holding THAI BEVERAGE or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THAI BEVERAGE vs. TRADEDOUBLER AB SK
Performance |
| Timeline |
| THAI BEVERAGE |
| TRADEDOUBLER AB SK |
THAI BEVERAGE and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and TRADEDOUBLER
The main advantage of trading using opposite THAI BEVERAGE and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB | TRADEDOUBLER vs. NorAm Drilling AS | TRADEDOUBLER vs. Norsk Hydro ASA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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