Correlation Between THAI BEVERAGE and CHEMICAL INDUSTRIES
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and CHEMICAL INDUSTRIES, you can compare the effects of market volatilities on THAI BEVERAGE and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and CHEMICAL INDUSTRIES.
Diversification Opportunities for THAI BEVERAGE and CHEMICAL INDUSTRIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between THAI and CHEMICAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and CHEMICAL INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMICAL INDUSTRIES has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and CHEMICAL INDUSTRIES go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and CHEMICAL INDUSTRIES
If you would invest 36.00 in THAI BEVERAGE on September 23, 2024 and sell it today you would earn a total of 1.00 from holding THAI BEVERAGE or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
THAI BEVERAGE vs. CHEMICAL INDUSTRIES
Performance |
| Timeline |
| THAI BEVERAGE |
| CHEMICAL INDUSTRIES |
THAI BEVERAGE and CHEMICAL INDUSTRIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and CHEMICAL INDUSTRIES
The main advantage of trading using opposite THAI BEVERAGE and CHEMICAL INDUSTRIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES will offset losses from the drop in CHEMICAL INDUSTRIES's long position.| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
| CHEMICAL INDUSTRIES vs. PREMIER FOODS | CHEMICAL INDUSTRIES vs. THAI BEVERAGE | CHEMICAL INDUSTRIES vs. National Beverage Corp | CHEMICAL INDUSTRIES vs. KENEDIX OFFICE INV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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