Correlation Between Thai Beverage and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Thai Beverage and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and EPSILON HEALTHCARE.
Diversification Opportunities for Thai Beverage and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of Thai Beverage i.e., Thai Beverage and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Thai Beverage and EPSILON HEALTHCARE
Assuming the 90 days horizon Thai Beverage Public is expected to generate 4.6 times more return on investment than EPSILON HEALTHCARE. However, Thai Beverage is 4.6 times more volatile than EPSILON HEALTHCARE LTD. It trades about 0.07 of its potential returns per unit of risk. EPSILON HEALTHCARE LTD is currently generating about -0.03 per unit of risk. If you would invest 19.00 in Thai Beverage Public on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Thai Beverage Public or generate 105.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Thai Beverage Public vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Thai Beverage Public |
| EPSILON HEALTHCARE LTD |
Thai Beverage and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and EPSILON HEALTHCARE
The main advantage of trading using opposite Thai Beverage and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, EPSILON HEALTHCARE 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE'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 |
| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Elanco Animal Health | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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