Correlation Between Thai Beverage and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Siemens Healthineers 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 Siemens Healthineers 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 Siemens Healthineers AG, you can compare the effects of market volatilities on Thai Beverage and Siemens Healthineers 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 Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Siemens Healthineers.
Diversification Opportunities for Thai Beverage and Siemens Healthineers
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Siemens is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers 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 Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of Thai Beverage i.e., Thai Beverage and Siemens Healthineers go up and down completely randomly.
Pair Corralation between Thai Beverage and Siemens Healthineers
Assuming the 90 days horizon Thai Beverage Public is expected to generate 4.01 times more return on investment than Siemens Healthineers. However, Thai Beverage is 4.01 times more volatile than Siemens Healthineers AG. It trades about 0.05 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.01 per unit of risk. If you would invest 16.00 in Thai Beverage Public on October 29, 2024 and sell it today you would earn a total of 20.00 from holding Thai Beverage Public or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Siemens Healthineers AG
Performance |
| Timeline |
| Thai Beverage Public |
| Siemens Healthineers |
Thai Beverage and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Siemens Healthineers
The main advantage of trading using opposite Thai Beverage and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| Thai Beverage vs. Hisense Home Appliances | Thai Beverage vs. KENEDIX OFFICE INV | Thai Beverage vs. Perseus Mining Limited | Thai Beverage vs. GALENA MINING LTD |
| Siemens Healthineers vs. AGNC INVESTMENT | Siemens Healthineers vs. PLAYMATES TOYS | Siemens Healthineers vs. GigaMedia | Siemens Healthineers vs. FRACTAL GAMING 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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