Correlation Between TH International and Marstons PLC
Can any of the company-specific risk be diversified away by investing in both TH International and Marstons PLC 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 TH International and Marstons PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TH International Limited and Marstons PLC, you can compare the effects of market volatilities on TH International and Marstons PLC 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 TH International with a short position of Marstons PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TH International and Marstons PLC.
Diversification Opportunities for TH International and Marstons PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between THCH and Marstons is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TH International Limited and Marstons PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marstons PLC and TH International 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 TH International Limited are associated (or correlated) with Marstons PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marstons PLC has no effect on the direction of TH International i.e., TH International and Marstons PLC go up and down completely randomly.
Pair Corralation between TH International and Marstons PLC
Given the investment horizon of 90 days TH International Limited is expected to under-perform the Marstons PLC. In addition to that, TH International is 1.28 times more volatile than Marstons PLC. It trades about -0.02 of its total potential returns per unit of risk. Marstons PLC is currently generating about 0.02 per unit of volatility. If you would invest 399.00 in Marstons PLC on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Marstons PLC or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TH International Limited vs. Marstons PLC
Performance |
| Timeline |
| TH International |
| Marstons PLC |
TH International and Marstons PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TH International and Marstons PLC
The main advantage of trading using opposite TH International and Marstons PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TH International position performs unexpectedly, Marstons PLC 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 Marstons PLC will offset losses from the drop in Marstons PLC's long position.| TH International vs. Highway Holdings Limited | TH International vs. QCR Holdings | TH International vs. Partner Communications | TH International vs. Acumen Pharmaceuticals |
| Marstons PLC vs. Marstons PLC | Marstons PLC vs. Bagger Daves Burger | Marstons PLC vs. Flanigans Enterprises | Marstons PLC vs. Ark Restaurants Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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