Correlation Between Thai Beverage and TMT Acquisition
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and TMT Acquisition 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 TMT Acquisition 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 TMT Acquisition Corp, you can compare the effects of market volatilities on Thai Beverage and TMT Acquisition 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 TMT Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and TMT Acquisition.
Diversification Opportunities for Thai Beverage and TMT Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and TMT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and TMT Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMT Acquisition 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 TMT Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMT Acquisition Corp has no effect on the direction of Thai Beverage i.e., Thai Beverage and TMT Acquisition go up and down completely randomly.
Pair Corralation between Thai Beverage and TMT Acquisition
If you would invest 39.00 in TMT Acquisition Corp on September 1, 2024 and sell it today you would lose (1.00) from holding TMT Acquisition Corp or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Thai Beverage PCL vs. TMT Acquisition Corp
Performance |
| Timeline |
| Thai Beverage PCL |
| TMT Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Thai Beverage and TMT Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and TMT Acquisition
The main advantage of trading using opposite Thai Beverage and TMT Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, TMT Acquisition 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 TMT Acquisition will offset losses from the drop in TMT Acquisition'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 |
| TMT Acquisition vs. Analog Devices | TMT Acquisition vs. Thai Beverage PCL | TMT Acquisition vs. Vita Coco | TMT Acquisition vs. Aehr Test Systems |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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