Correlation Between COFCO Joycome and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome 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 COFCO Joycome and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Thai Beverage Public, you can compare the effects of market volatilities on COFCO Joycome 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 COFCO Joycome with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Thai Beverage.
Diversification Opportunities for COFCO Joycome and Thai Beverage
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COFCO and Thai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and COFCO Joycome 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 COFCO Joycome Foods 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 Public has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Thai Beverage go up and down completely randomly.
Pair Corralation between COFCO Joycome and Thai Beverage
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 0.72 times more return on investment than Thai Beverage. However, COFCO Joycome Foods is 1.39 times less risky than Thai Beverage. It trades about 0.05 of its potential returns per unit of risk. Thai Beverage Public is currently generating about -0.05 per unit of risk. If you would invest 16.00 in COFCO Joycome Foods on December 1, 2024 and sell it today you would earn a total of 1.00 from holding COFCO Joycome Foods or generate 6.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
COFCO Joycome Foods vs. Thai Beverage Public
Performance |
Timeline |
COFCO Joycome Foods |
Thai Beverage Public |
COFCO Joycome and Thai Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COFCO Joycome and Thai Beverage
The main advantage of trading using opposite COFCO Joycome and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome 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.COFCO Joycome vs. Heidelberg Materials AG | COFCO Joycome vs. Fair Value Reit | COFCO Joycome vs. Plastic Omnium | COFCO Joycome vs. Rayonier Advanced Materials |
Thai Beverage vs. Iridium Communications | Thai Beverage vs. China Telecom | Thai Beverage vs. Chunghwa Telecom Co | Thai Beverage vs. ADRIATIC METALS LS 013355 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |