Correlation Between Strategic Investments and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Strategic Investments 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 Strategic Investments and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Investments AS and Thai Beverage Public, you can compare the effects of market volatilities on Strategic Investments 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 Strategic Investments with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Investments and Thai Beverage.
Diversification Opportunities for Strategic Investments and Thai Beverage
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Strategic and Thai is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Investments AS 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 Strategic Investments 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 Strategic Investments AS 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 Strategic Investments i.e., Strategic Investments and Thai Beverage go up and down completely randomly.
Pair Corralation between Strategic Investments and Thai Beverage
Assuming the 90 days horizon Strategic Investments AS is expected to generate 2.68 times more return on investment than Thai Beverage. However, Strategic Investments is 2.68 times more volatile than Thai Beverage Public. It trades about 0.01 of its potential returns per unit of risk. Thai Beverage Public is currently generating about -0.01 per unit of risk. If you would invest 14.00 in Strategic Investments AS on December 29, 2024 and sell it today you would lose (2.00) from holding Strategic Investments AS or give up 14.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Strategic Investments AS vs. Thai Beverage Public
Performance |
Timeline |
Strategic Investments |
Thai Beverage Public |
Strategic Investments and Thai Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strategic Investments and Thai Beverage
The main advantage of trading using opposite Strategic Investments and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Investments 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.Strategic Investments vs. ePlay Digital | Strategic Investments vs. Gaming and Leisure | Strategic Investments vs. NorAm Drilling AS | Strategic Investments vs. 24SEVENOFFICE GROUP AB |
Thai Beverage vs. China BlueChemical | Thai Beverage vs. Eastman Chemical | Thai Beverage vs. Liberty Broadband | Thai Beverage vs. Computer And Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |