Correlation Between Thai Beverage and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Liberty Media 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 Liberty Media 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 Liberty Media, you can compare the effects of market volatilities on Thai Beverage and Liberty Media 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Liberty Media.
Diversification Opportunities for Thai Beverage and Liberty Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of Thai Beverage i.e., Thai Beverage and Liberty Media go up and down completely randomly.
Pair Corralation between Thai Beverage and Liberty Media
If you would invest 5,646 in Liberty Media on September 3, 2024 and sell it today you would earn a total of 1,523 from holding Liberty Media or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thai Beverage PCL vs. Liberty Media
Performance |
| Timeline |
| Thai Beverage PCL |
| Liberty Media |
Thai Beverage and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Liberty Media
The main advantage of trading using opposite Thai Beverage and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media'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 |
| Liberty Media vs. Chester Mining | Liberty Media vs. Westrock Coffee | Liberty Media vs. National Beverage Corp | Liberty Media vs. Thai Beverage PCL |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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