Correlation Between Thai Beverage and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and MAGNUM MINING 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 MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Beverage Public and MAGNUM MINING EXP, you can compare the effects of market volatilities on Thai Beverage and MAGNUM MINING 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and MAGNUM MINING.
Diversification Opportunities for Thai Beverage and MAGNUM MINING
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and MAGNUM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 Public are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of Thai Beverage i.e., Thai Beverage and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Thai Beverage and MAGNUM MINING
Assuming the 90 days horizon Thai Beverage Public is expected to generate 0.79 times more return on investment than MAGNUM MINING. However, Thai Beverage Public is 1.26 times less risky than MAGNUM MINING. It trades about -0.02 of its potential returns per unit of risk. MAGNUM MINING EXP is currently generating about -0.15 per unit of risk. If you would invest 38.00 in Thai Beverage Public on December 5, 2024 and sell it today you would lose (2.00) from holding Thai Beverage Public or give up 5.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Thai Beverage Public vs. MAGNUM MINING EXP
Performance |
Timeline |
Thai Beverage Public |
MAGNUM MINING EXP |
Thai Beverage and MAGNUM MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thai Beverage and MAGNUM MINING
The main advantage of trading using opposite Thai Beverage and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.Thai Beverage vs. HUTCHISON TELECOMM | Thai Beverage vs. Cellnex Telecom SA | Thai Beverage vs. Singapore Telecommunications Limited | Thai Beverage vs. Chunghwa Telecom Co |
MAGNUM MINING vs. Cardinal Health | MAGNUM MINING vs. UNIDOC HEALTH P | MAGNUM MINING vs. SQUIRREL MEDIA SA | MAGNUM MINING vs. ANTA Sports Products |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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