Correlation Between Kemper and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both Kemper and THAI BEVERAGE 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 Kemper and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kemper and THAI BEVERAGE, you can compare the effects of market volatilities on Kemper and THAI BEVERAGE 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 Kemper with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kemper and THAI BEVERAGE.
Diversification Opportunities for Kemper and THAI BEVERAGE
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kemper and THAI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kemper and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and Kemper 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 Kemper are associated (or correlated) with THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of Kemper i.e., Kemper and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between Kemper and THAI BEVERAGE
Assuming the 90 days horizon Kemper is expected to under-perform the THAI BEVERAGE. But the stock apears to be less risky and, when comparing its historical volatility, Kemper is 1.62 times less risky than THAI BEVERAGE. The stock trades about 0.0 of its potential returns per unit of risk. The THAI BEVERAGE is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 35.00 in THAI BEVERAGE on September 13, 2024 and sell it today you would earn a total of 3.00 from holding THAI BEVERAGE or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kemper vs. THAI BEVERAGE
Performance |
| Timeline |
| Kemper |
| THAI BEVERAGE |
Kemper and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kemper and THAI BEVERAGE
The main advantage of trading using opposite Kemper and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kemper position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| Kemper vs. TOREX SEMICONDUCTOR LTD | Kemper vs. AGNC INVESTMENT | Kemper vs. SLR Investment Corp | Kemper vs. REGAL ASIAN INVESTMENTS |
| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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