Correlation Between Thai Beverage and Mattel
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Mattel 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 Mattel 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 Mattel Inc, you can compare the effects of market volatilities on Thai Beverage and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Mattel.
Diversification Opportunities for Thai Beverage and Mattel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and Mattel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Thai Beverage i.e., Thai Beverage and Mattel go up and down completely randomly.
Pair Corralation between Thai Beverage and Mattel
If you would invest 3,367 in Thai Beverage PCL on September 18, 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 | 98.44% |
Values | Daily Returns |
Thai Beverage PCL vs. Mattel Inc
Performance |
Timeline |
Thai Beverage PCL |
Mattel Inc |
Thai Beverage and Mattel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thai Beverage and Mattel
The main advantage of trading using opposite Thai Beverage and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel'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 |
Mattel vs. Clarus Corp | Mattel vs. OneSpaWorld Holdings | Mattel vs. Leatt Corp | Mattel vs. Six Flags Entertainment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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