Correlation Between Thai Beverage and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on Thai Beverage and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and AUSTEVOLL SEAFOOD.
Diversification Opportunities for Thai Beverage and AUSTEVOLL SEAFOOD
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thai and AUSTEVOLL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of Thai Beverage i.e., Thai Beverage and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between Thai Beverage and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon Thai Beverage Public is expected to generate 0.99 times more return on investment than AUSTEVOLL SEAFOOD. However, Thai Beverage Public is 1.01 times less risky than AUSTEVOLL SEAFOOD. It trades about 0.06 of its potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.05 per unit of risk. If you would invest 16.00 in Thai Beverage Public on October 13, 2024 and sell it today you would earn a total of 25.00 from holding Thai Beverage Public or generate 156.25% 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. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| Thai Beverage Public |
| AUSTEVOLL SEAFOOD |
Thai Beverage and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite Thai Beverage and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| Thai Beverage vs. CARSALESCOM | Thai Beverage vs. CarsalesCom | Thai Beverage vs. Cal Maine Foods | Thai Beverage vs. EBRO FOODS |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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