Correlation Between Thai Beverage and AdCapital
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and AdCapital 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 AdCapital 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 AdCapital AG, you can compare the effects of market volatilities on Thai Beverage and AdCapital 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 AdCapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and AdCapital.
Diversification Opportunities for Thai Beverage and AdCapital
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and AdCapital is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and AdCapital AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdCapital AG 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 AdCapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdCapital AG has no effect on the direction of Thai Beverage i.e., Thai Beverage and AdCapital go up and down completely randomly.
Pair Corralation between Thai Beverage and AdCapital
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.53 times more return on investment than AdCapital. However, Thai Beverage is 1.53 times more volatile than AdCapital AG. It trades about 0.07 of its potential returns per unit of risk. AdCapital AG is currently generating about 0.04 per unit of risk. If you would invest 19.00 in Thai Beverage Public on November 3, 2024 and sell it today you would earn a total of 19.00 from holding Thai Beverage Public or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. AdCapital AG
Performance |
| Timeline |
| Thai Beverage Public |
| AdCapital AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thai Beverage and AdCapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and AdCapital
The main advantage of trading using opposite Thai Beverage and AdCapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, AdCapital 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 AdCapital will offset losses from the drop in AdCapital's long position.| Thai Beverage vs. ecotel communication ag | Thai Beverage vs. East Africa Metals | Thai Beverage vs. GRIFFIN MINING LTD | Thai Beverage vs. De Grey Mining |
| AdCapital vs. Grupo Carso SAB | AdCapital vs. ecotel communication ag | AdCapital vs. INTERNET INJPADR 1 | AdCapital vs. Cars Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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