Correlation Between Thai Beverage and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Thai Beverage and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Superior Plus.
Diversification Opportunities for Thai Beverage and Superior Plus
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thai and Superior is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Thai Beverage i.e., Thai Beverage and Superior Plus go up and down completely randomly.
Pair Corralation between Thai Beverage and Superior Plus
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.16 times more return on investment than Superior Plus. However, Thai Beverage is 1.16 times more volatile than Superior Plus Corp. It trades about 0.05 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.07 per unit of risk. If you would invest 33.00 in Thai Beverage Public on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Thai Beverage Public or generate 15.15% 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. Superior Plus Corp
Performance |
| Timeline |
| Thai Beverage Public |
| Superior Plus Corp |
Thai Beverage and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Superior Plus
The main advantage of trading using opposite Thai Beverage and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Thai Beverage vs. DOCDATA | Thai Beverage vs. Cass Information Systems | Thai Beverage vs. INFORMATION SVC GRP | Thai Beverage vs. PUBLIC STORAGE PRFO |
| Superior Plus vs. BROADSTNET LEADL 00025 | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. Martin Marietta Materials | Superior Plus vs. Summit Materials |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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