Correlation Between Thai Beverage and 694308JT5

Can any of the company-specific risk be diversified away by investing in both Thai Beverage and 694308JT5 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 694308JT5 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 PCG 325 01 JUN 31, you can compare the effects of market volatilities on Thai Beverage and 694308JT5 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 694308JT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and 694308JT5.

Diversification Opportunities for Thai Beverage and 694308JT5

0.46

Correlation Coefficient

Thai Beverage  694308JT5

Very weak diversification

The 3 months correlation between Thai and 694308JT5 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and PCG 325 01 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 325 01 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 694308JT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 325 01 has no effect on the direction of Thai Beverage i.e., Thai Beverage and 694308JT5 go up and down completely randomly.

Pair Corralation between Thai Beverage and 694308JT5

Assuming the 90 days horizon Thai Beverage PCL is expected to generate 0.68 times more return on investment than 694308JT5. However, Thai Beverage PCL is 1.46 times less risky than 694308JT5. It trades about 0.13 of its potential returns per unit of risk. PCG 325 01 JUN 31 is currently generating about -0.16 per unit of risk. If you would invest  3,231  in Thai Beverage PCL on December 24, 2024 and sell it today you would earn a total of  136.00  from holding Thai Beverage PCL or generate 4.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	88.52%
Values	Daily Returns

Thai Beverage PCL  vs.  PCG 325 01 JUN 31

Thai Beverage PCL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Beverage PCL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. 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.

PCG 325 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCG 325 01 JUN 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for PCG 325 01 JUN 31 investors.

Pair Trading with Thai Beverage and 694308JT5

The main advantage of trading using opposite Thai Beverage and 694308JT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, 694308JT5 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 694308JT5 will offset losses from the drop in 694308JT5's long position.

The idea behind Thai Beverage PCL and PCG 325 01 JUN 31 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..