Correlation Between Thai Beverage and AIRBNB INC
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and AIRBNB INC 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 AIRBNB INC 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 AIRBNB INC DL 01, you can compare the effects of market volatilities on Thai Beverage and AIRBNB INC 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 AIRBNB INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and AIRBNB INC.
Diversification Opportunities for Thai Beverage and AIRBNB INC
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thai and AIRBNB is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and AIRBNB INC DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRBNB INC DL 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 AIRBNB INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRBNB INC DL has no effect on the direction of Thai Beverage i.e., Thai Beverage and AIRBNB INC go up and down completely randomly.
Pair Corralation between Thai Beverage and AIRBNB INC
Assuming the 90 days horizon Thai Beverage Public is expected to generate 2.33 times more return on investment than AIRBNB INC. However, Thai Beverage is 2.33 times more volatile than AIRBNB INC DL 01. It trades about 0.06 of its potential returns per unit of risk. AIRBNB INC DL 01 is currently generating about 0.02 per unit of risk. If you would invest 20.00 in Thai Beverage Public on September 4, 2024 and sell it today you would earn a total of 19.00 from holding Thai Beverage Public or generate 95.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Thai Beverage Public vs. AIRBNB INC DL 01
Performance |
| Timeline |
| Thai Beverage Public |
| AIRBNB INC DL |
Thai Beverage and AIRBNB INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and AIRBNB INC
The main advantage of trading using opposite Thai Beverage and AIRBNB INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, AIRBNB INC 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 AIRBNB INC will offset losses from the drop in AIRBNB INC's long position.| Thai Beverage vs. BII Railway Transportation | Thai Beverage vs. JD SPORTS FASH | Thai Beverage vs. Air Transport Services | Thai Beverage vs. TITANIUM TRANSPORTGROUP |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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