Correlation Between Thai Beverage and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on Thai Beverage and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and ALBIS LEASING.
Diversification Opportunities for Thai Beverage and ALBIS LEASING
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and ALBIS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Thai Beverage i.e., Thai Beverage and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Thai Beverage and ALBIS LEASING
Assuming the 90 days horizon Thai Beverage Public is expected to generate 3.99 times more return on investment than ALBIS LEASING. However, Thai Beverage is 3.99 times more volatile than ALBIS LEASING AG. It trades about 0.02 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about -0.07 per unit of risk. If you would invest 37.00 in Thai Beverage Public on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Thai Beverage Public or generate 0.0% 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. ALBIS LEASING AG
Performance |
| Timeline |
| Thai Beverage Public |
| ALBIS LEASING AG |
Thai Beverage and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and ALBIS LEASING
The main advantage of trading using opposite Thai Beverage and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Thai Beverage vs. Hemisphere Energy Corp | Thai Beverage vs. ecotel communication ag | Thai Beverage vs. Adtalem Global Education | Thai Beverage vs. Charter Communications |
| ALBIS LEASING vs. Molson Coors Beverage | ALBIS LEASING vs. Thai Beverage Public | ALBIS LEASING vs. GRUPO CARSO A1 | ALBIS LEASING vs. CarsalesCom |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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