Correlation Between Andrew Peller and Thai Beverage

Can any of the company-specific risk be diversified away by investing in both Andrew Peller 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 Andrew Peller and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Andrew Peller Limited and Thai Beverage PCL, you can compare the effects of market volatilities on Andrew Peller 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 Andrew Peller with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andrew Peller and Thai Beverage.

Diversification Opportunities for Andrew Peller and Thai Beverage

0.94

Correlation Coefficient

Andrew Peller  Thai Beverage

Almost no diversification

The 3 months correlation between Andrew and Thai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Andrew Peller Limited and Thai Beverage PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage PCL and Andrew Peller 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 Andrew Peller Limited 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 PCL has no effect on the direction of Andrew Peller i.e., Andrew Peller and Thai Beverage go up and down completely randomly.

Pair Corralation between Andrew Peller and Thai Beverage

Assuming the 90 days horizon Andrew Peller Limited is expected to generate 3.41 times more return on investment than Thai Beverage. However, Andrew Peller is 3.41 times more volatile than Thai Beverage PCL. It trades about 0.15 of its potential returns per unit of risk. Thai Beverage PCL is currently generating about 0.13 per unit of risk. If you would invest  278.00  in Andrew Peller Limited on December 29, 2024 and sell it today you would earn a total of  47.00  from holding Andrew Peller Limited or generate 16.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Andrew Peller Limited  vs.  Thai Beverage PCL

Andrew Peller Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Andrew Peller Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Andrew Peller reported solid returns over the last few months and may actually be approaching a breakup point.

Thai Beverage PCL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Beverage PCL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Thai Beverage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Andrew Peller and Thai Beverage

The main advantage of trading using opposite Andrew Peller and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andrew Peller 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.

The idea behind Andrew Peller Limited and Thai Beverage PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.