Correlation Between Thai Beverage and Iridium Communications
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Iridium Communications 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 Iridium Communications 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 Iridium Communications, you can compare the effects of market volatilities on Thai Beverage and Iridium Communications 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 Iridium Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Iridium Communications.
Diversification Opportunities for Thai Beverage and Iridium Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Iridium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Iridium Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iridium Communications 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 Iridium Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iridium Communications has no effect on the direction of Thai Beverage i.e., Thai Beverage and Iridium Communications go up and down completely randomly.
Pair Corralation between Thai Beverage and Iridium Communications
If you would invest 2,950 in Iridium Communications on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Iridium Communications or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thai Beverage PCL vs. Iridium Communications
Performance |
| Timeline |
| Thai Beverage PCL |
| Iridium Communications |
Thai Beverage and Iridium Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Iridium Communications
The main advantage of trading using opposite Thai Beverage and Iridium Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Iridium Communications 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 Iridium Communications will offset losses from the drop in Iridium Communications' long position.| Thai Beverage vs. Diageo PLC ADR | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Constellation Brands Class | Thai Beverage vs. Brown Forman |
| Iridium Communications vs. Cogent Communications Group | Iridium Communications vs. IDT Corporation | Iridium Communications vs. Cable One | Iridium Communications vs. SK Telecom Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |