Correlation Between Thai Beverage and KIMCO

Can any of the company-specific risk be diversified away by investing in both Thai Beverage and KIMCO 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 KIMCO 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 KIMCO RLTY P, you can compare the effects of market volatilities on Thai Beverage and KIMCO 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 KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and KIMCO.

Diversification Opportunities for Thai Beverage and KIMCO

0.0

Correlation Coefficient

Thai Beverage  KIMCO

Pay attention - limited upside

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

Pair Corralation between Thai Beverage and KIMCO

Assuming the 90 days horizon Thai Beverage PCL is expected to under-perform the KIMCO. In addition to that, Thai Beverage is 4.18 times more volatile than KIMCO RLTY P. It trades about -0.04 of its total potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.06 per unit of volatility. If you would invest  9,148  in KIMCO RLTY P on October 5, 2024 and sell it today you would earn a total of  547.00  from holding KIMCO RLTY P or generate 5.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	59.93%
Values	Daily Returns

Thai Beverage PCL  vs.  KIMCO RLTY P

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.

KIMCO RLTY P

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KIMCO RLTY P are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KIMCO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thai Beverage and KIMCO

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

The idea behind Thai Beverage PCL and KIMCO RLTY P 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.

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.