Correlation Between Thai Beverage and Aehr Test
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Aehr Test 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 Aehr Test into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Beverage PCL and Aehr Test Systems, you can compare the effects of market volatilities on Thai Beverage and Aehr Test 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 Aehr Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Aehr Test.
Diversification Opportunities for Thai Beverage and Aehr Test
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Aehr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Aehr Test Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aehr Test Systems 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 PCL are associated (or correlated) with Aehr Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aehr Test Systems has no effect on the direction of Thai Beverage i.e., Thai Beverage and Aehr Test go up and down completely randomly.
Pair Corralation between Thai Beverage and Aehr Test
If you would invest 1,171 in Aehr Test Systems on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Aehr Test Systems or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thai Beverage PCL vs. Aehr Test Systems
Performance |
| Timeline |
| Thai Beverage PCL |
| Aehr Test Systems |
Thai Beverage and Aehr Test Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Aehr Test
The main advantage of trading using opposite Thai Beverage and Aehr Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Aehr Test 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 Aehr Test will offset losses from the drop in Aehr Test's long position.| Thai Beverage vs. Andrew Peller Limited | Thai Beverage vs. Aristocrat Group Corp | Thai Beverage vs. Iconic Brands | Thai Beverage vs. Naked Wines plc |
| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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