Correlation Between Thai Beverage and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Hf Foods 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 Foods 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 Foods Group, you can compare the effects of market volatilities on Thai Beverage and Hf Foods 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 Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Hf Foods.
Diversification Opportunities for Thai Beverage and Hf Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and HFFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods Group 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 Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hf Foods Group has no effect on the direction of Thai Beverage i.e., Thai Beverage and Hf Foods go up and down completely randomly.
Pair Corralation between Thai Beverage and Hf Foods
Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the Hf Foods. But the pink sheet apears to be less risky and, when comparing its historical volatility, Thai Beverage PCL is 1.99 times less risky than Hf Foods. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Hf Foods Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Hf Foods Group on August 28, 2024 and sell it today you would lose (56.00) from holding Hf Foods Group or give up 13.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Thai Beverage PCL vs. Hf Foods Group
Performance |
| Timeline |
| Thai Beverage PCL |
| Hf Foods Group |
Thai Beverage and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Hf Foods
The main advantage of trading using opposite Thai Beverage and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Hf Foods 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 Foods will offset losses from the drop in Hf Foods' 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 Foods vs. Innovative Food Hldg | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse | Hf Foods vs. AMCON Distributing |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |