Correlation Between Thai Beverage and RESMINING UNSPADR10

Can any of the company-specific risk be diversified away by investing in both Thai Beverage and RESMINING UNSPADR10 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 RESMINING UNSPADR10 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thai Beverage Public and RESMINING UNSPADR10, you can compare the effects of market volatilities on Thai Beverage and RESMINING UNSPADR10 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 RESMINING UNSPADR10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and RESMINING UNSPADR10.

Diversification Opportunities for Thai Beverage and RESMINING UNSPADR10

-0.65

Correlation Coefficient

Thai Beverage  RESMINING UNSPADR10

Excellent diversification

The 3 months correlation between Thai and RESMINING is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage Public and RESMINING UNSPADR10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RESMINING UNSPADR10 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 Public are associated (or correlated) with RESMINING UNSPADR10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RESMINING UNSPADR10 has no effect on the direction of Thai Beverage i.e., Thai Beverage and RESMINING UNSPADR10 go up and down completely randomly.

Pair Corralation between Thai Beverage and RESMINING UNSPADR10

Assuming the 90 days horizon Thai Beverage is expected to generate 16.51 times less return on investment than RESMINING UNSPADR10. In addition to that, Thai Beverage is 1.06 times more volatile than RESMINING UNSPADR10. It trades about 0.01 of its total potential returns per unit of risk. RESMINING UNSPADR10 is currently generating about 0.15 per unit of volatility. If you would invest  252.00  in RESMINING UNSPADR10 on April 21, 2025 and sell it today you would earn a total of  96.00  from holding RESMINING UNSPADR10 or generate 38.1% return on investment over 90 days.

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

Thai Beverage Public  vs.  RESMINING UNSPADR10

Thai Beverage Public

Risk-Adjusted Performance

Very Weak

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

RESMINING UNSPADR10

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RESMINING UNSPADR10 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, RESMINING UNSPADR10 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thai Beverage and RESMINING UNSPADR10

The main advantage of trading using opposite Thai Beverage and RESMINING UNSPADR10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Beverage position performs unexpectedly, RESMINING UNSPADR10 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 RESMINING UNSPADR10 will offset losses from the drop in RESMINING UNSPADR10's long position.

The idea behind Thai Beverage Public and RESMINING UNSPADR10 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.