Correlation Between Thai Beverage and Emerson Electric
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Emerson Electric 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 Emerson Electric 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 Emerson Electric, you can compare the effects of market volatilities on Thai Beverage and Emerson Electric 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 Emerson Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Emerson Electric.
Diversification Opportunities for Thai Beverage and Emerson Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Emerson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Emerson Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerson Electric 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 Emerson Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerson Electric has no effect on the direction of Thai Beverage i.e., Thai Beverage and Emerson Electric go up and down completely randomly.
Pair Corralation between Thai Beverage and Emerson Electric
If you would invest 12,218 in Emerson Electric on November 3, 2024 and sell it today you would earn a total of 777.00 from holding Emerson Electric or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Thai Beverage PCL vs. Emerson Electric
Performance |
| Timeline |
| Thai Beverage PCL |
| Emerson Electric |
Thai Beverage and Emerson Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Emerson Electric
The main advantage of trading using opposite Thai Beverage and Emerson Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Emerson Electric 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 Emerson Electric will offset losses from the drop in Emerson Electric'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 |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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