Correlation Between Q2M Managementberatu and THAI BEVERAGE

Can any of the company-specific risk be diversified away by investing in both Q2M Managementberatu 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 Q2M Managementberatu and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Q2M Managementberatung AG and THAI BEVERAGE, you can compare the effects of market volatilities on Q2M Managementberatu 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 Q2M Managementberatu with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2M Managementberatu and THAI BEVERAGE.

Diversification Opportunities for Q2M Managementberatu and THAI BEVERAGE

0.1

Correlation Coefficient

Q2M Managementberatu  THAI BEVERAGE

Average diversification

The 3 months correlation between Q2M and THAI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Q2M Managementberatung AG and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and Q2M Managementberatu 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 Q2M Managementberatung AG 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 Q2M Managementberatu i.e., Q2M Managementberatu and THAI BEVERAGE go up and down completely randomly.

Pair Corralation between Q2M Managementberatu and THAI BEVERAGE

If you would invest  35.00  in THAI BEVERAGE on September 2, 2024 and sell it today you would earn a total of  4.00  from holding THAI BEVERAGE or generate 11.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Q2M Managementberatung AG  vs.  THAI BEVERAGE

Q2M Managementberatung

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Q2M Managementberatung AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Q2M Managementberatu is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

THAI BEVERAGE

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in THAI BEVERAGE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather 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 Q2M Managementberatu and THAI BEVERAGE

The main advantage of trading using opposite Q2M Managementberatu and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2M Managementberatu 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 Q2M Managementberatung AG 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.