Correlation Between Thai Beverage and Affiliated Resources
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Affiliated Resources 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 Affiliated Resources 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 Affiliated Resources Corp, you can compare the effects of market volatilities on Thai Beverage and Affiliated Resources 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 Affiliated Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Affiliated Resources.
Diversification Opportunities for Thai Beverage and Affiliated Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Affiliated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Affiliated Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Resources Corp 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 Affiliated Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Resources Corp has no effect on the direction of Thai Beverage i.e., Thai Beverage and Affiliated Resources go up and down completely randomly.
Pair Corralation between Thai Beverage and Affiliated Resources
If you would invest 8.88 in Affiliated Resources Corp on September 12, 2024 and sell it today you would earn a total of 0.07 from holding Affiliated Resources Corp or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thai Beverage PCL vs. Affiliated Resources Corp
Performance |
| Timeline |
| Thai Beverage PCL |
| Affiliated Resources Corp |
Thai Beverage and Affiliated Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Affiliated Resources
The main advantage of trading using opposite Thai Beverage and Affiliated Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Affiliated Resources 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 Affiliated Resources will offset losses from the drop in Affiliated Resources' 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 |
| Affiliated Resources vs. PT Astra International | Affiliated Resources vs. Astra International Tbk | Affiliated Resources vs. Mobileye Global Class | Affiliated Resources vs. HUMANA INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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