Correlation Between THAI BEVERAGE and BC0

Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and BC0 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 THAI BEVERAGE and BC0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between THAI BEVERAGE and BC0, you can compare the effects of market volatilities on THAI BEVERAGE and BC0 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 THAI BEVERAGE with a short position of BC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and BC0.

Diversification Opportunities for THAI BEVERAGE and BC0

0.0

Correlation Coefficient

THAI BEVERAGE  BC0

Pay attention - limited upside

The 3 months correlation between THAI and BC0 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and BC0 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC0 and THAI BEVERAGE 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 THAI BEVERAGE are associated (or correlated) with BC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC0 has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and BC0 go up and down completely randomly.

Pair Corralation between THAI BEVERAGE and BC0

If you would invest (100.00) in BC0 on October 23, 2024 and sell it today you would earn a total of  100.00  from holding BC0 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

THAI BEVERAGE  vs.  BC0

THAI BEVERAGE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days THAI BEVERAGE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, THAI BEVERAGE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

BC0

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BC0 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, BC0 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with THAI BEVERAGE and BC0

The main advantage of trading using opposite THAI BEVERAGE and BC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, BC0 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 BC0 will offset losses from the drop in BC0's long position.

The idea behind THAI BEVERAGE and BC0 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.