Correlation Between Thai Beverage and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on Thai Beverage and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Solstad Offshore.
Diversification Opportunities for Thai Beverage and Solstad Offshore
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Thai and Solstad is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Thai Beverage i.e., Thai Beverage and Solstad Offshore go up and down completely randomly.
Pair Corralation between Thai Beverage and Solstad Offshore
If you would invest 309.00 in Solstad Offshore ASA on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Solstad Offshore ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.47% |
| Values | Daily Returns |
Thai Beverage PCL vs. Solstad Offshore ASA
Performance |
| Timeline |
| Thai Beverage PCL |
| Solstad Offshore ASA |
Thai Beverage and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Solstad Offshore
The main advantage of trading using opposite Thai Beverage and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore'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 |
| Solstad Offshore vs. Western Digital | Solstad Offshore vs. Sphere Entertainment Co | Solstad Offshore vs. Asure Software | Solstad Offshore vs. NETGEAR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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