Correlation Between Thai Beverage and Scientific Games
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Scientific Games 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 Scientific Games 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 Scientific Games, you can compare the effects of market volatilities on Thai Beverage and Scientific Games 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 Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Scientific Games.
Diversification Opportunities for Thai Beverage and Scientific Games
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and Scientific is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games 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 Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of Thai Beverage i.e., Thai Beverage and Scientific Games go up and down completely randomly.
Pair Corralation between Thai Beverage and Scientific Games
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.03 times more return on investment than Scientific Games. However, Thai Beverage is 1.03 times more volatile than Scientific Games. It trades about 0.06 of its potential returns per unit of risk. Scientific Games is currently generating about 0.04 per unit of risk. If you would invest 35.00 in Thai Beverage Public on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Thai Beverage Public or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage Public vs. Scientific Games
Performance |
| Timeline |
| Thai Beverage Public |
| Scientific Games |
Thai Beverage and Scientific Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Scientific Games
The main advantage of trading using opposite Thai Beverage and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Scientific Games 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 Scientific Games will offset losses from the drop in Scientific Games' long position.| Thai Beverage vs. LGI Homes | Thai Beverage vs. Hisense Home Appliances | Thai Beverage vs. MeVis Medical Solutions | Thai Beverage vs. Neinor Homes SA |
| Scientific Games vs. Marie Brizard Wine | Scientific Games vs. Lendlease Group | Scientific Games vs. Zijin Mining Group | Scientific Games vs. ITALIAN WINE BRANDS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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