Correlation Between Thai Beverage and Nomad Foods
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Nomad Foods 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 Nomad Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Beverage Public and Nomad Foods, you can compare the effects of market volatilities on Thai Beverage and Nomad Foods 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 Nomad Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Nomad Foods.
Diversification Opportunities for Thai Beverage and Nomad Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Nomad is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Nomad Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomad Foods 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 Public are associated (or correlated) with Nomad Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomad Foods has no effect on the direction of Thai Beverage i.e., Thai Beverage and Nomad Foods go up and down completely randomly.
Pair Corralation between Thai Beverage and Nomad Foods
Assuming the 90 days horizon Thai Beverage Public is expected to generate 2.13 times more return on investment than Nomad Foods. However, Thai Beverage is 2.13 times more volatile than Nomad Foods. It trades about 0.01 of its potential returns per unit of risk. Nomad Foods is currently generating about -0.28 per unit of risk. If you would invest 39.00 in Thai Beverage Public on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Thai Beverage Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Nomad Foods
Performance |
| Timeline |
| Thai Beverage Public |
| Nomad Foods |
Thai Beverage and Nomad Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Nomad Foods
The main advantage of trading using opposite Thai Beverage and Nomad Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Nomad Foods 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 Nomad Foods will offset losses from the drop in Nomad Foods' long position.| Thai Beverage vs. RCS MediaGroup SpA | Thai Beverage vs. GAMESTOP | Thai Beverage vs. Live Nation Entertainment | Thai Beverage vs. SQUIRREL MEDIA SA |
| Nomad Foods vs. Strategic Education | Nomad Foods vs. Gaztransport Technigaz SA | Nomad Foods vs. Yuexiu Transport Infrastructure | Nomad Foods vs. CHINA EDUCATION 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |