Correlation Between Thai Beverage and United States
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on Thai Beverage and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and United States.
Diversification Opportunities for Thai Beverage and United States
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and United is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Thai Beverage i.e., Thai Beverage and United States go up and down completely randomly.
Pair Corralation between Thai Beverage and United States
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.92 times more return on investment than United States. However, Thai Beverage is 1.92 times more volatile than United States Steel. It trades about 0.05 of its potential returns per unit of risk. United States Steel is currently generating about 0.04 per unit of risk. If you would invest 17.00 in Thai Beverage Public on October 16, 2024 and sell it today you would earn a total of 19.00 from holding Thai Beverage Public or generate 111.76% 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. United States Steel
Performance |
| Timeline |
| Thai Beverage Public |
| United States Steel |
Thai Beverage and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and United States
The main advantage of trading using opposite Thai Beverage and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Thai Beverage vs. National Beverage Corp | Thai Beverage vs. United Breweries Co | Thai Beverage vs. Performance Food Group | Thai Beverage vs. THAI BEVERAGE |
| United States vs. WillScot Mobile Mini | United States vs. United Breweries Co | United States vs. Thai Beverage Public | United States vs. THAI BEVERAGE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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