Correlation Between Thai Beverage and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on Thai Beverage and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Suntory Beverage.
Diversification Opportunities for Thai Beverage and Suntory Beverage
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and Suntory is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Thai Beverage i.e., Thai Beverage and Suntory Beverage go up and down completely randomly.
Pair Corralation between Thai Beverage and Suntory Beverage
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.55 times more return on investment than Suntory Beverage. However, Thai Beverage is 1.55 times more volatile than Suntory Beverage Food. It trades about 0.06 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.01 per unit of risk. If you would invest 35.00 in Thai Beverage Public on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Thai Beverage Public or generate 2.86% 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. Suntory Beverage Food
Performance |
| Timeline |
| Thai Beverage Public |
| Suntory Beverage Food |
Thai Beverage and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Suntory Beverage
The main advantage of trading using opposite Thai Beverage and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Thai Beverage vs. LGI Homes | Thai Beverage vs. Hisense Home Appliances | Thai Beverage vs. MeVis Medical Solutions | Thai Beverage vs. Neinor Homes SA |
| Suntory Beverage vs. MAVEN WIRELESS SWEDEN | Suntory Beverage vs. Playtech plc | Suntory Beverage vs. ACCSYS TECHPLC EO | Suntory Beverage vs. GLG LIFE TECH |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |