Correlation Between Thai Beverage and Richardson Electronics
Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Richardson Electronics 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 Richardson Electronics 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 Richardson Electronics, you can compare the effects of market volatilities on Thai Beverage and Richardson Electronics 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 Richardson Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Richardson Electronics.
Diversification Opportunities for Thai Beverage and Richardson Electronics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Richardson is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Richardson Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richardson Electronics 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 Richardson Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richardson Electronics has no effect on the direction of Thai Beverage i.e., Thai Beverage and Richardson Electronics go up and down completely randomly.
Pair Corralation between Thai Beverage and Richardson Electronics
Assuming the 90 days horizon Thai Beverage is expected to generate 3.61 times less return on investment than Richardson Electronics. But when comparing it to its historical volatility, Thai Beverage PCL is 2.33 times less risky than Richardson Electronics. It trades about 0.06 of its potential returns per unit of risk. Richardson Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 966.00 in Richardson Electronics on September 12, 2025 and sell it today you would earn a total of 164.00 from holding Richardson Electronics or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Thai Beverage PCL vs. Richardson Electronics
Performance |
| Timeline |
| Thai Beverage PCL |
| Richardson Electronics |
Thai Beverage and Richardson Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Beverage and Richardson Electronics
The main advantage of trading using opposite Thai Beverage and Richardson Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, Richardson Electronics 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 Richardson Electronics will offset losses from the drop in Richardson Electronics' long position.| Thai Beverage vs. Big Rock Brewery | Thai Beverage vs. Jones Soda Co | Thai Beverage vs. DAVIDsTEA | Thai Beverage vs. Colabor Group |
| Richardson Electronics vs. Treasure Global | Richardson Electronics vs. Auddia Inc | Richardson Electronics vs. OLB Group | Richardson Electronics vs. Urgently Common Stock |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |