Correlation Between Thai Beverage and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and SEI Investments 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 SEI Investments 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 SEI Investments, you can compare the effects of market volatilities on Thai Beverage and SEI Investments 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 SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and SEI Investments.
Diversification Opportunities for Thai Beverage and SEI Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and SEI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments 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 SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of Thai Beverage i.e., Thai Beverage and SEI Investments go up and down completely randomly.
Pair Corralation between Thai Beverage and SEI Investments
Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the SEI Investments. In addition to that, Thai Beverage is 1.01 times more volatile than SEI Investments. It trades about -0.09 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.14 per unit of volatility. If you would invest 6,650 in SEI Investments on August 28, 2024 and sell it today you would earn a total of 1,507 from holding SEI Investments or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Thai Beverage PCL vs. SEI Investments
Performance |
| Timeline |
| Thai Beverage PCL |
| SEI Investments |
Thai Beverage and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and SEI Investments
The main advantage of trading using opposite Thai Beverage and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| Thai Beverage vs. Diageo PLC ADR | Thai Beverage vs. Constellation Brands Class | Thai Beverage vs. Morningstar Unconstrained Allocation | Thai Beverage vs. SEI Investments |
| SEI Investments vs. Aurora Innovation | SEI Investments vs. HUMANA INC | SEI Investments vs. Aquagold International | SEI Investments vs. Barloworld Ltd ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance |