Correlation Between Thai Beverage and Dream Homes
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Dream Homes 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 Dream Homes 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 Dream Homes Development, you can compare the effects of market volatilities on Thai Beverage and Dream Homes 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 Dream Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Dream Homes.
Diversification Opportunities for Thai Beverage and Dream Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Dream is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Dream Homes Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Homes Development 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 Dream Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Homes Development has no effect on the direction of Thai Beverage i.e., Thai Beverage and Dream Homes go up and down completely randomly.
Pair Corralation between Thai Beverage and Dream Homes
Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the Dream Homes. But the pink sheet apears to be less risky and, when comparing its historical volatility, Thai Beverage PCL is 4.54 times less risky than Dream Homes. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Dream Homes Development is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3.99 in Dream Homes Development on August 27, 2024 and sell it today you would lose (2.99) from holding Dream Homes Development or give up 74.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 56.48% |
| Values | Daily Returns |
Thai Beverage PCL vs. Dream Homes Development
Performance |
| Timeline |
| Thai Beverage PCL |
| Dream Homes Development |
Thai Beverage and Dream Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Dream Homes
The main advantage of trading using opposite Thai Beverage and Dream Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Dream Homes 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 Dream Homes will offset losses from the drop in Dream Homes' 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 |
| Dream Homes vs. Greystone Logistics | Dream Homes vs. Mill City Ventures | Dream Homes vs. Barksdale Resources Corp | Dream Homes vs. Black Diamond 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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