Correlation Between Thai Beverage and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Impala Platinum 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 Impala Platinum 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 Impala Platinum Holdings, you can compare the effects of market volatilities on Thai Beverage and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Impala Platinum.
Diversification Opportunities for Thai Beverage and Impala Platinum
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Impala is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Thai Beverage i.e., Thai Beverage and Impala Platinum go up and down completely randomly.
Pair Corralation between Thai Beverage and Impala Platinum
Assuming the 90 days horizon Thai Beverage Public is expected to generate 0.86 times more return on investment than Impala Platinum. However, Thai Beverage Public is 1.17 times less risky than Impala Platinum. It trades about 0.17 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about 0.0 per unit of risk. If you would invest 36.00 in Thai Beverage Public on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Thai Beverage Public or generate 8.33% 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. Impala Platinum Holdings
Performance |
| Timeline |
| Thai Beverage Public |
| Impala Platinum Holdings |
Thai Beverage and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Impala Platinum
The main advantage of trading using opposite Thai Beverage and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Thai Beverage vs. Diageo plc | Thai Beverage vs. Rmy Cointreau SA | Thai Beverage vs. Treasury Wine Estates |
| Impala Platinum vs. PREMIER FOODS | Impala Platinum vs. British American Tobacco | Impala Platinum vs. Astral Foods Limited | Impala Platinum vs. Thai Beverage Public |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |