Correlation Between Thai Beverage and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and HF Sinclair 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 HF Sinclair 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 HF Sinclair Corp, you can compare the effects of market volatilities on Thai Beverage and HF Sinclair 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 HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and HF Sinclair.
Diversification Opportunities for Thai Beverage and HF Sinclair
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and DINO is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair 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 HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Thai Beverage i.e., Thai Beverage and HF Sinclair go up and down completely randomly.
Pair Corralation between Thai Beverage and HF Sinclair
If you would invest 3,367 in Thai Beverage PCL on January 7, 2025 and sell it today you would earn a total of 0.00 from holding Thai Beverage PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thai Beverage PCL vs. HF Sinclair Corp
Performance |
| Timeline |
| Thai Beverage PCL |
| HF Sinclair Corp |
Thai Beverage and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and HF Sinclair
The main advantage of trading using opposite Thai Beverage and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, HF Sinclair 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 HF Sinclair will offset losses from the drop in HF Sinclair'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 |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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