Correlation Between FANDIFI TECHNOLOGY and THAI BEVERAGE

Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and THAI BEVERAGE 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 FANDIFI TECHNOLOGY and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and THAI BEVERAGE, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and THAI BEVERAGE 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 FANDIFI TECHNOLOGY with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and THAI BEVERAGE.

Diversification Opportunities for FANDIFI TECHNOLOGY and THAI BEVERAGE

0.0

Correlation Coefficient

FANDIFI TECHNOLOGY  THAI BEVERAGE

Pay attention - limited upside

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

Pair Corralation between FANDIFI TECHNOLOGY and THAI BEVERAGE

Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 5.15 times more return on investment than THAI BEVERAGE. However, FANDIFI TECHNOLOGY is 5.15 times more volatile than THAI BEVERAGE. It trades about 0.05 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.06 per unit of risk. If you would invest  3.20  in FANDIFI TECHNOLOGY P on October 11, 2024 and sell it today you would lose (3.15) from holding FANDIFI TECHNOLOGY P or give up 98.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

FANDIFI TECHNOLOGY P  vs.  THAI BEVERAGE

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FANDIFI TECHNOLOGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FANDIFI TECHNOLOGY is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

THAI BEVERAGE

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in THAI BEVERAGE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, THAI BEVERAGE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FANDIFI TECHNOLOGY and THAI BEVERAGE

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

The idea behind FANDIFI TECHNOLOGY P and THAI BEVERAGE 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.