Correlation Between Thai Vegetable and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both Thai Vegetable and Berli Jucker 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 Vegetable and Berli Jucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Vegetable Oil and Berli Jucker Public, you can compare the effects of market volatilities on Thai Vegetable and Berli Jucker 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 Vegetable with a short position of Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Vegetable and Berli Jucker.
Diversification Opportunities for Thai Vegetable and Berli Jucker
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and Berli is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Thai Vegetable Oil and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker Public and Thai Vegetable 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 Vegetable Oil are associated (or correlated) with Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of Thai Vegetable i.e., Thai Vegetable and Berli Jucker go up and down completely randomly.
Pair Corralation between Thai Vegetable and Berli Jucker
Assuming the 90 days trading horizon Thai Vegetable Oil is expected to under-perform the Berli Jucker. But the stock apears to be less risky and, when comparing its historical volatility, Thai Vegetable Oil is 2.05 times less risky than Berli Jucker. The stock trades about -0.43 of its potential returns per unit of risk. The Berli Jucker Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,270 in Berli Jucker Public on November 2, 2024 and sell it today you would lose (20.00) from holding Berli Jucker Public or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Vegetable Oil vs. Berli Jucker Public
Performance |
| Timeline |
| Thai Vegetable Oil |
| Berli Jucker Public |
Thai Vegetable and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Vegetable and Berli Jucker
The main advantage of trading using opposite Thai Vegetable and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Vegetable position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| Thai Vegetable vs. Charoen Pokphand Foods | Thai Vegetable vs. Thai Union Group | Thai Vegetable vs. TISCO Financial Group | Thai Vegetable vs. Thanachart Capital Public |
| Berli Jucker vs. CP ALL Public | Berli Jucker vs. Bangkok Dusit Medical | Berli Jucker vs. BTS Group Holdings | Berli Jucker vs. Central Pattana Public |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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