Correlation Between Thai Beverage and Valeura Energy
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Valeura Energy 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 Valeura Energy 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 Valeura Energy, you can compare the effects of market volatilities on Thai Beverage and Valeura Energy 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 Valeura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Valeura Energy.
Diversification Opportunities for Thai Beverage and Valeura Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Valeura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Valeura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valeura Energy 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 Valeura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valeura Energy has no effect on the direction of Thai Beverage i.e., Thai Beverage and Valeura Energy go up and down completely randomly.
Pair Corralation between Thai Beverage and Valeura Energy
If you would invest 321.00 in Valeura Energy on August 30, 2024 and sell it today you would earn a total of 48.00 from holding Valeura Energy or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Beverage PCL vs. Valeura Energy
Performance |
| Timeline |
| Thai Beverage PCL |
| Valeura Energy |
Thai Beverage and Valeura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Valeura Energy
The main advantage of trading using opposite Thai Beverage and Valeura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Valeura Energy 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 Valeura Energy will offset losses from the drop in Valeura Energy'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 |
| Valeura Energy vs. Thai Beverage PCL | Valeura Energy vs. Park Ohio Holdings | Valeura Energy vs. Willamette Valley Vineyards | Valeura Energy vs. EMCOR Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |