Correlation Between Thai Beverage and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and PennantPark Floating 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 PennantPark Floating 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 PennantPark Floating Rate, you can compare the effects of market volatilities on Thai Beverage and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and PennantPark Floating.
Diversification Opportunities for Thai Beverage and PennantPark Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Thai Beverage i.e., Thai Beverage and PennantPark Floating go up and down completely randomly.
Pair Corralation between Thai Beverage and PennantPark Floating
Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the PennantPark Floating. In addition to that, Thai Beverage is 1.82 times more volatile than PennantPark Floating Rate. It trades about -0.04 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.04 per unit of volatility. If you would invest 1,029 in PennantPark Floating Rate on September 4, 2024 and sell it today you would earn a total of 77.00 from holding PennantPark Floating Rate or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 59.51% |
| Values | Daily Returns |
Thai Beverage PCL vs. PennantPark Floating Rate
Performance |
| Timeline |
| Thai Beverage PCL |
| PennantPark Floating Rate |
Thai Beverage and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and PennantPark Floating
The main advantage of trading using opposite Thai Beverage and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Thai Beverage vs. Diageo PLC ADR | Thai Beverage vs. Constellation Brands Class | Thai Beverage vs. Brown Forman | Thai Beverage vs. Davide Campari Milano NV |
| PennantPark Floating vs. Visa Class A | PennantPark Floating vs. Diamond Hill Investment | PennantPark Floating vs. Associated Capital Group | PennantPark Floating vs. Brookfield Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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