Correlation Between Thai Beverage and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and SAN MIGUEL 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 SAN MIGUEL 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 SAN MIGUEL BREWERY, you can compare the effects of market volatilities on Thai Beverage and SAN MIGUEL 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 SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and SAN MIGUEL.
Diversification Opportunities for Thai Beverage and SAN MIGUEL
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thai and SAN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and SAN MIGUEL BREWERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAN MIGUEL BREWERY 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 SAN MIGUEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAN MIGUEL BREWERY has no effect on the direction of Thai Beverage i.e., Thai Beverage and SAN MIGUEL go up and down completely randomly.
Pair Corralation between Thai Beverage and SAN MIGUEL
Assuming the 90 days horizon Thai Beverage is expected to generate 5.79 times less return on investment than SAN MIGUEL. In addition to that, Thai Beverage is 1.63 times more volatile than SAN MIGUEL BREWERY. It trades about 0.02 of its total potential returns per unit of risk. SAN MIGUEL BREWERY is currently generating about 0.2 per unit of volatility. If you would invest 10.00 in SAN MIGUEL BREWERY on November 1, 2024 and sell it today you would earn a total of 1.00 from holding SAN MIGUEL BREWERY or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| Thai Beverage Public |
| SAN MIGUEL BREWERY |
Thai Beverage and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and SAN MIGUEL
The main advantage of trading using opposite Thai Beverage and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, SAN MIGUEL 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 SAN MIGUEL will offset losses from the drop in SAN MIGUEL's long position.| Thai Beverage vs. SEKISUI CHEMICAL | Thai Beverage vs. SIERRA METALS | Thai Beverage vs. PARKEN Sport Entertainment | Thai Beverage vs. DISTRICT METALS |
| SAN MIGUEL vs. Performance Food Group | SAN MIGUEL vs. PATTIES FOODS | SAN MIGUEL vs. PLANT VEDA FOODS | SAN MIGUEL vs. US FOODS HOLDING |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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