Correlation Between Thai Beverage and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and JetBlue Airways 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 JetBlue Airways 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 JetBlue Airways Corp, you can compare the effects of market volatilities on Thai Beverage and JetBlue Airways 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 JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and JetBlue Airways.
Diversification Opportunities for Thai Beverage and JetBlue Airways
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and JetBlue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways 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 JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of Thai Beverage i.e., Thai Beverage and JetBlue Airways go up and down completely randomly.
Pair Corralation between Thai Beverage and JetBlue Airways
If you would invest 570.00 in JetBlue Airways Corp on September 1, 2024 and sell it today you would earn a total of 27.00 from holding JetBlue Airways Corp or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thai Beverage PCL vs. JetBlue Airways Corp
Performance |
| Timeline |
| Thai Beverage PCL |
| JetBlue Airways Corp |
Thai Beverage and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and JetBlue Airways
The main advantage of trading using opposite Thai Beverage and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' 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 |
| JetBlue Airways vs. Canadian Pacific Railway | JetBlue Airways vs. Werner Enterprises | JetBlue Airways vs. Canadian National Railway | JetBlue Airways vs. CSX Corporation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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