Correlation Between Thai Beverage and Genertec Universal
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Genertec Universal 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 Genertec Universal 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 Genertec Universal Medical, you can compare the effects of market volatilities on Thai Beverage and Genertec Universal 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 Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Genertec Universal.
Diversification Opportunities for Thai Beverage and Genertec Universal
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and Genertec is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal 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 Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of Thai Beverage i.e., Thai Beverage and Genertec Universal go up and down completely randomly.
Pair Corralation between Thai Beverage and Genertec Universal
Assuming the 90 days horizon Thai Beverage Public is expected to under-perform the Genertec Universal. In addition to that, Thai Beverage is 1.67 times more volatile than Genertec Universal Medical. It trades about -0.05 of its total potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.12 per unit of volatility. If you would invest 57.00 in Genertec Universal Medical on November 8, 2024 and sell it today you would earn a total of 3.00 from holding Genertec Universal Medical or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Genertec Universal Medical
Performance |
| Timeline |
| Thai Beverage Public |
| Genertec Universal |
Thai Beverage and Genertec Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Genertec Universal
The main advantage of trading using opposite Thai Beverage and Genertec Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Genertec Universal 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 Genertec Universal will offset losses from the drop in Genertec Universal's long position.| Thai Beverage vs. Diageo plc | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Constellation Brands | Thai Beverage vs. Rmy Cointreau SA |
| Genertec Universal vs. ATOSS SOFTWARE | Genertec Universal vs. ASURE SOFTWARE | Genertec Universal vs. G III APPAREL GROUP | Genertec Universal vs. Beta Systems Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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