Correlation Between ASSOC BR and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both ASSOC BR 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 ASSOC BR and THAI BEVERAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSOC BR FOODS and THAI BEVERAGE, you can compare the effects of market volatilities on ASSOC BR 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 ASSOC BR with a short position of THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSOC BR and THAI BEVERAGE.
Diversification Opportunities for ASSOC BR and THAI BEVERAGE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASSOC and THAI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ASSOC BR FOODS and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE and ASSOC BR 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 ASSOC BR FOODS 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 ASSOC BR i.e., ASSOC BR and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between ASSOC BR and THAI BEVERAGE
Assuming the 90 days trading horizon ASSOC BR FOODS is expected to under-perform the THAI BEVERAGE. In addition to that, ASSOC BR is 1.23 times more volatile than THAI BEVERAGE. It trades about -0.03 of its total potential returns per unit of risk. THAI BEVERAGE is currently generating about -0.02 per unit of volatility. If you would invest 31.00 in THAI BEVERAGE on September 5, 2025 and sell it today you would lose (1.00) from holding THAI BEVERAGE or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASSOC BR FOODS vs. THAI BEVERAGE
Performance |
| Timeline |
| ASSOC BR FOODS |
| THAI BEVERAGE |
ASSOC BR and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSOC BR and THAI BEVERAGE
The main advantage of trading using opposite ASSOC BR and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSOC BR 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.| ASSOC BR vs. Martin Marietta Materials | ASSOC BR vs. Thai Beverage Public | ASSOC BR vs. Tsingtao Brewery | ASSOC BR vs. BOSTON BEER A |
| THAI BEVERAGE vs. TCL MULTIMEDIA TECH | THAI BEVERAGE vs. LBG MEDIA PLC | THAI BEVERAGE vs. Southern Cross Media | THAI BEVERAGE vs. NORTH MEDIA AS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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