Correlation Between Thai Beverage and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and FuelCell Energy 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 FuelCell Energy 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 FuelCell Energy, you can compare the effects of market volatilities on Thai Beverage and FuelCell Energy 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 FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and FuelCell Energy.
Diversification Opportunities for Thai Beverage and FuelCell Energy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and FuelCell is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy 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 FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Thai Beverage i.e., Thai Beverage and FuelCell Energy go up and down completely randomly.
Pair Corralation between Thai Beverage and FuelCell Energy
Assuming the 90 days horizon Thai Beverage Public is expected to generate 0.83 times more return on investment than FuelCell Energy. However, Thai Beverage Public is 1.2 times less risky than FuelCell Energy. It trades about 0.02 of its potential returns per unit of risk. FuelCell Energy is currently generating about -0.32 per unit of risk. If you would invest 38.00 in Thai Beverage Public on November 7, 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 | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Thai Beverage Public vs. FuelCell Energy
Performance |
| Timeline |
| Thai Beverage Public |
| FuelCell Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Thai Beverage and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and FuelCell Energy
The main advantage of trading using opposite Thai Beverage and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, FuelCell Energy 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| Thai Beverage vs. Emperor Entertainment Hotel | Thai Beverage vs. Hyatt Hotels | Thai Beverage vs. COMMERCIAL VEHICLE | Thai Beverage vs. Dalata Hotel Group |
| FuelCell Energy vs. BJs Restaurants | FuelCell Energy vs. Wayside Technology Group | FuelCell Energy vs. Luckin Coffee | FuelCell Energy vs. VIVA WINE GROUP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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