Correlation Between Thai Beverage and Lipocine
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Lipocine 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 Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Beverage PCL and Lipocine, you can compare the effects of market volatilities on Thai Beverage and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Lipocine.
Diversification Opportunities for Thai Beverage and Lipocine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Lipocine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 PCL are associated (or correlated) with Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Thai Beverage i.e., Thai Beverage and Lipocine go up and down completely randomly.
Pair Corralation between Thai Beverage and Lipocine
If you would invest 3,367 in Thai Beverage PCL on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Thai Beverage PCL or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.35% |
Values | Daily Returns |
Thai Beverage PCL vs. Lipocine
Performance |
Timeline |
Thai Beverage PCL |
Lipocine |
Thai Beverage and Lipocine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thai Beverage and Lipocine
The main advantage of trading using opposite Thai Beverage and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.Thai Beverage vs. Andrew Peller Limited | Thai Beverage vs. Aristocrat Group Corp | Thai Beverage vs. Iconic Brands | Thai Beverage vs. Naked Wines plc |
Lipocine vs. Capricor Therapeutics | Lipocine vs. Akari Therapeutics PLC | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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