Correlation Between Thai Beverage and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Chuangs China 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 Chuangs China 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 Chuangs China Investments, you can compare the effects of market volatilities on Thai Beverage and Chuangs China 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 Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Chuangs China.
Diversification Opportunities for Thai Beverage and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments 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 Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Thai Beverage i.e., Thai Beverage and Chuangs China go up and down completely randomly.
Pair Corralation between Thai Beverage and Chuangs China
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.1 times more return on investment than Chuangs China. However, Thai Beverage is 1.1 times more volatile than Chuangs China Investments. It trades about 0.06 of its potential returns per unit of risk. Chuangs China Investments is currently generating about 0.01 per unit of risk. If you would invest 20.00 in Thai Beverage Public on October 29, 2024 and sell it today you would earn a total of 16.00 from holding Thai Beverage Public or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Chuangs China Investments
Performance |
| Timeline |
| Thai Beverage Public |
| Chuangs China Investments |
Thai Beverage and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Chuangs China
The main advantage of trading using opposite Thai Beverage and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| Thai Beverage vs. Hisense Home Appliances | Thai Beverage vs. KENEDIX OFFICE INV | Thai Beverage vs. Perseus Mining Limited | Thai Beverage vs. GALENA MINING LTD |
| Chuangs China vs. Highlight Communications AG | Chuangs China vs. Cairo Communication SpA | Chuangs China vs. COMBA TELECOM SYST | Chuangs China vs. Charter Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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