Correlation Between Inflection Point and Thai Beverage

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

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

Diversification Opportunities for Inflection Point and Thai Beverage

0.0

Correlation Coefficient

Inflection Point  Thai Beverage

Pay attention - limited upside

The 3 months correlation between Inflection and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition 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 Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Thai Beverage go up and down completely randomly.

Pair Corralation between Inflection Point and Thai Beverage

Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 25.27 times more return on investment than Thai Beverage. However, Inflection Point is 25.27 times more volatile than Thai Beverage PCL. It trades about 0.05 of its potential returns per unit of risk. Thai Beverage PCL is currently generating about -0.07 per unit of risk. If you would invest  0.00  in Inflection Point Acquisition on October 23, 2024 and sell it today you would earn a total of  1,295  from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.83%
Values	Daily Returns

Inflection Point Acquisition  vs.  Thai Beverage PCL

Inflection Point Acq

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Inflection Point unveiled solid returns over the last few months and may actually be approaching a breakup point.

Thai Beverage PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thai Beverage PCL has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Inflection Point and Thai Beverage

The main advantage of trading using opposite Inflection Point and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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 Inflection Point Acquisition 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.