Correlation Between Thai Beverage and 92939UAG1

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Can any of the company-specific risk be diversified away by investing in both Thai Beverage and 92939UAG1 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 92939UAG1 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 WEC 22 15 DEC 28, you can compare the effects of market volatilities on Thai Beverage and 92939UAG1 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 92939UAG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and 92939UAG1.

Diversification Opportunities for Thai Beverage and 92939UAG1

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Thai and 92939UAG1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and WEC 22 15 DEC 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEC 22 15 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 92939UAG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEC 22 15 has no effect on the direction of Thai Beverage i.e., Thai Beverage and 92939UAG1 go up and down completely randomly.

Pair Corralation between Thai Beverage and 92939UAG1

Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the 92939UAG1. In addition to that, Thai Beverage is 3.91 times more volatile than WEC 22 15 DEC 28. It trades about -0.06 of its total potential returns per unit of risk. WEC 22 15 DEC 28 is currently generating about 0.02 per unit of volatility. If you would invest  8,656  in WEC 22 15 DEC 28 on September 3, 2024 and sell it today you would earn a total of  388.00  from holding WEC 22 15 DEC 28 or generate 4.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy69.46%
ValuesDaily Returns

Thai Beverage PCL  vs.  WEC 22 15 DEC 28

 Performance 
       Timeline  
Thai Beverage PCL 

Risk-Adjusted Performance

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Over the last 90 days Thai Beverage PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Thai Beverage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
WEC 22 15 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days WEC 22 15 DEC 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 92939UAG1 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Thai Beverage and 92939UAG1 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thai Beverage and 92939UAG1

The main advantage of trading using opposite Thai Beverage and 92939UAG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, 92939UAG1 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 92939UAG1 will offset losses from the drop in 92939UAG1's long position.
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The idea behind Thai Beverage PCL and WEC 22 15 DEC 28 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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