Correlation Between KYB PORATION and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both KYB PORATION 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 KYB PORATION and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KYB PORATION and Thai Beverage Public, you can compare the effects of market volatilities on KYB PORATION 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 KYB PORATION with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of KYB PORATION and Thai Beverage.
Diversification Opportunities for KYB PORATION and Thai Beverage
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KYB and Thai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KYB PORATION and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and KYB PORATION 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 KYB PORATION 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 Public has no effect on the direction of KYB PORATION i.e., KYB PORATION and Thai Beverage go up and down completely randomly.
Pair Corralation between KYB PORATION and Thai Beverage
Assuming the 90 days horizon KYB PORATION is expected to generate 0.68 times more return on investment than Thai Beverage. However, KYB PORATION is 1.46 times less risky than Thai Beverage. It trades about 0.12 of its potential returns per unit of risk. Thai Beverage Public is currently generating about 0.0 per unit of risk. If you would invest 1,480 in KYB PORATION on September 22, 2024 and sell it today you would earn a total of 230.00 from holding KYB PORATION or generate 15.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KYB PORATION vs. Thai Beverage Public
Performance |
Timeline |
KYB PORATION |
Thai Beverage Public |
KYB PORATION and Thai Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KYB PORATION and Thai Beverage
The main advantage of trading using opposite KYB PORATION and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KYB PORATION 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.KYB PORATION vs. Zoom Video Communications | KYB PORATION vs. The Boston Beer | KYB PORATION vs. Thai Beverage Public | KYB PORATION vs. Guidewire Software |
Thai Beverage vs. USWE SPORTS AB | Thai Beverage vs. DISTRICT METALS | Thai Beverage vs. PLAYSTUDIOS A DL 0001 | Thai Beverage vs. ARISTOCRAT LEISURE |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Transaction History View history of all your transactions and understand their impact on performance | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |