Correlation Between Brockhaus Capital and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and Thai Beverage Public, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Thai Beverage.
Diversification Opportunities for Brockhaus Capital and Thai Beverage
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brockhaus and Thai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management 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 Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and Thai Beverage go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Thai Beverage
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the Thai Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Brockhaus Capital Management is 1.43 times less risky than Thai Beverage. The stock trades about -0.15 of its potential returns per unit of risk. The Thai Beverage Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Thai Beverage Public on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Thai Beverage Public or generate 8.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Brockhaus Capital Management vs. Thai Beverage Public
Performance |
Timeline |
Brockhaus Capital |
Thai Beverage Public |
Brockhaus Capital and Thai Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brockhaus Capital and Thai Beverage
The main advantage of trading using opposite Brockhaus Capital and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
Thai Beverage vs. Diageo plc | Thai Beverage vs. Rmy Cointreau SA | Thai Beverage vs. Treasury Wine Estates |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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