Correlation Between UNICREDIT SPA and Thai Beverage

Can any of the company-specific risk be diversified away by investing in both UNICREDIT SPA 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 UNICREDIT SPA and Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNICREDIT SPA ADR and Thai Beverage Public, you can compare the effects of market volatilities on UNICREDIT SPA 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 UNICREDIT SPA with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNICREDIT SPA and Thai Beverage.

Diversification Opportunities for UNICREDIT SPA and Thai Beverage

0.0

Correlation Coefficient

UNICREDIT SPA  Thai Beverage

Pay attention - limited upside

The 3 months correlation between UNICREDIT and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNICREDIT SPA ADR 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 UNICREDIT SPA 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 UNICREDIT SPA ADR 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 UNICREDIT SPA i.e., UNICREDIT SPA and Thai Beverage go up and down completely randomly.

Pair Corralation between UNICREDIT SPA and Thai Beverage

If you would invest  34.00  in Thai Beverage Public on September 5, 2024 and sell it today you would earn a total of  7.00  from holding Thai Beverage Public or generate 20.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

UNICREDIT SPA ADR  vs.  Thai Beverage Public

UNICREDIT SPA ADR

Risk-Adjusted Performance

0 of 100

Weak

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

Thai Beverage Public

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Beverage Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Thai Beverage may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with UNICREDIT SPA and Thai Beverage

The main advantage of trading using opposite UNICREDIT SPA and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNICREDIT SPA 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 UNICREDIT SPA ADR and Thai Beverage Public 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.