Correlation Between Thai Beverage and Strategic Education
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Strategic Education 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 Strategic Education 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 Strategic Education, you can compare the effects of market volatilities on Thai Beverage and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Strategic Education.
Diversification Opportunities for Thai Beverage and Strategic Education
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and Strategic is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of Thai Beverage i.e., Thai Beverage and Strategic Education go up and down completely randomly.
Pair Corralation between Thai Beverage and Strategic Education
Assuming the 90 days horizon Thai Beverage Public is expected to under-perform the Strategic Education. In addition to that, Thai Beverage is 4.57 times more volatile than Strategic Education. It trades about -0.02 of its total potential returns per unit of risk. Strategic Education is currently generating about 0.28 per unit of volatility. If you would invest 8,850 in Strategic Education on October 25, 2024 and sell it today you would earn a total of 400.00 from holding Strategic Education or generate 4.52% 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. Strategic Education
Performance |
| Timeline |
| Thai Beverage Public |
| Strategic Education |
Thai Beverage and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Strategic Education
The main advantage of trading using opposite Thai Beverage and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| Thai Beverage vs. DALATA HOTEL | Thai Beverage vs. Park Hotels Resorts | Thai Beverage vs. SBM OFFSHORE | Thai Beverage vs. AIR PRODCHEMICALS |
| Strategic Education vs. IDP EDUCATION LTD | Strategic Education vs. TAL Education Group | Strategic Education vs. Grand Canyon Education | Strategic Education vs. Graham Holdings Co |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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