Correlation Between Thai Beverage and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on Thai Beverage and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Perseus Mining.
Diversification Opportunities for Thai Beverage and Perseus Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thai and Perseus is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Thai Beverage i.e., Thai Beverage and Perseus Mining go up and down completely randomly.
Pair Corralation between Thai Beverage and Perseus Mining
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.26 times more return on investment than Perseus Mining. However, Thai Beverage is 1.26 times more volatile than Perseus Mining Limited. It trades about 0.08 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.01 per unit of risk. If you would invest 36.00 in Thai Beverage Public on September 13, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Perseus Mining Limited
Performance |
| Timeline |
| Thai Beverage Public |
| Perseus Mining |
Thai Beverage and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Perseus Mining
The main advantage of trading using opposite Thai Beverage and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Thai Beverage vs. Diageo plc | Thai Beverage vs. Rmy Cointreau SA | Thai Beverage vs. Treasury Wine Estates |
| Perseus Mining vs. Boyd Gaming | Perseus Mining vs. CI GAMES SA | Perseus Mining vs. GameStop Corp | Perseus Mining vs. ULTRA CLEAN HLDGS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |