Correlation Between Thai Beverage and MPLX LP
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and MPLX LP 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 Thai Beverage and MPLX LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Beverage PCL and MPLX LP, you can compare the effects of market volatilities on Thai Beverage and MPLX LP 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 Thai Beverage with a short position of MPLX LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and MPLX LP.
Diversification Opportunities for Thai Beverage and MPLX LP
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thai and MPLX is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and MPLX LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPLX LP and Thai Beverage 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 Thai Beverage PCL are associated (or correlated) with MPLX LP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPLX LP has no effect on the direction of Thai Beverage i.e., Thai Beverage and MPLX LP go up and down completely randomly.
Pair Corralation between Thai Beverage and MPLX LP
Assuming the 90 days horizon Thai Beverage is expected to generate 1.51 times less return on investment than MPLX LP. In addition to that, Thai Beverage is 1.35 times more volatile than MPLX LP. It trades about 0.06 of its total potential returns per unit of risk. MPLX LP is currently generating about 0.13 per unit of volatility. If you would invest 4,981 in MPLX LP on August 29, 2025 and sell it today you would earn a total of 383.00 from holding MPLX LP or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Thai Beverage PCL vs. MPLX LP
Performance |
| Timeline |
| Thai Beverage PCL |
| MPLX LP |
Thai Beverage and MPLX LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and MPLX LP
The main advantage of trading using opposite Thai Beverage and MPLX LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, MPLX LP 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 MPLX LP will offset losses from the drop in MPLX LP's long position.| Thai Beverage vs. Diageo plc | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Pernod Ricard SA | Thai Beverage vs. Diageo PLC ADR |
| MPLX LP vs. Altisource Asset Management | MPLX LP vs. China Industrial Waste | MPLX LP vs. DATA Communications Management | MPLX LP vs. Thai Beverage PCL |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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