Correlation Between Thai Beverage and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Astral Foods 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 Astral Foods 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 Astral Foods Limited, you can compare the effects of market volatilities on Thai Beverage and Astral Foods 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Astral Foods.
Diversification Opportunities for Thai Beverage and Astral Foods
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Astral is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Thai Beverage i.e., Thai Beverage and Astral Foods go up and down completely randomly.
Pair Corralation between Thai Beverage and Astral Foods
Assuming the 90 days horizon Thai Beverage is expected to generate 1.11 times less return on investment than Astral Foods. In addition to that, Thai Beverage is 1.26 times more volatile than Astral Foods Limited. It trades about 0.22 of its total potential returns per unit of risk. Astral Foods Limited is currently generating about 0.31 per unit of volatility. If you would invest 840.00 in Astral Foods Limited on September 13, 2024 and sell it today you would earn a total of 110.00 from holding Astral Foods Limited or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Astral Foods Limited
Performance |
| Timeline |
| Thai Beverage Public |
| Astral Foods Limited |
Thai Beverage and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Astral Foods
The main advantage of trading using opposite Thai Beverage and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Thai Beverage vs. Diageo plc | Thai Beverage vs. Rmy Cointreau SA | Thai Beverage vs. Treasury Wine Estates |
| Astral Foods vs. Tyson Foods | Astral Foods vs. Mowi ASA | Astral Foods vs. SalMar ASA | Astral Foods vs. Superior Plus Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |