Correlation Between Thai Beverage and DELTA AIR
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and DELTA AIR 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 DELTA AIR 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 DELTA AIR LINES, you can compare the effects of market volatilities on Thai Beverage and DELTA AIR 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 DELTA AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and DELTA AIR.
Diversification Opportunities for Thai Beverage and DELTA AIR
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thai and DELTA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and DELTA AIR LINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELTA AIR LINES 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 DELTA AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELTA AIR LINES has no effect on the direction of Thai Beverage i.e., Thai Beverage and DELTA AIR go up and down completely randomly.
Pair Corralation between Thai Beverage and DELTA AIR
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.73 times more return on investment than DELTA AIR. However, Thai Beverage is 1.73 times more volatile than DELTA AIR LINES. It trades about 0.1 of its potential returns per unit of risk. DELTA AIR LINES is currently generating about -0.12 per unit of risk. If you would invest 35.00 in Thai Beverage Public on September 22, 2024 and sell it today you would earn a total of 2.00 from holding Thai Beverage Public or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. DELTA AIR LINES
Performance |
| Timeline |
| Thai Beverage Public |
| DELTA AIR LINES |
Thai Beverage and DELTA AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and DELTA AIR
The main advantage of trading using opposite Thai Beverage and DELTA AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, DELTA AIR 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 DELTA AIR will offset losses from the drop in DELTA AIR's long position.| Thai Beverage vs. USWE SPORTS AB | Thai Beverage vs. DISTRICT METALS | Thai Beverage vs. PLAYSTUDIOS A DL 0001 | Thai Beverage vs. ARISTOCRAT LEISURE |
| DELTA AIR vs. CDL INVESTMENT | DELTA AIR vs. Postal Savings Bank | DELTA AIR vs. INTER CARS SA | DELTA AIR vs. SEI INVESTMENTS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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