Correlation Between Thai Beverage and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Thai Beverage and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Uber Technologies.
Diversification Opportunities for Thai Beverage and Uber Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and Uber is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Thai Beverage i.e., Thai Beverage and Uber Technologies go up and down completely randomly.
Pair Corralation between Thai Beverage and Uber Technologies
Assuming the 90 days horizon Thai Beverage Public is expected to generate 1.25 times more return on investment than Uber Technologies. However, Thai Beverage is 1.25 times more volatile than Uber Technologies. It trades about 0.03 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.03 per unit of risk. If you would invest 35.00 in Thai Beverage Public on October 18, 2024 and sell it today you would earn a total of 2.00 from holding Thai Beverage Public or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Thai Beverage Public vs. Uber Technologies
Performance |
| Timeline |
| Thai Beverage Public |
| Uber Technologies |
Thai Beverage and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Uber Technologies
The main advantage of trading using opposite Thai Beverage and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Thai Beverage vs. Air Transport Services | Thai Beverage vs. Cairo Communication SpA | Thai Beverage vs. GREENX METALS LTD | Thai Beverage vs. JD SPORTS FASH |
| Uber Technologies vs. Ebro Foods SA | Uber Technologies vs. USWE SPORTS AB | Uber Technologies vs. Thai Beverage Public | Uber Technologies vs. MTY Food 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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