Correlation Between Take-Two Interactive and Thai Beverage

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

By analyzing existing cross correlation between Take Two Interactive Software and Thai Beverage Public, you can compare the effects of market volatilities on Take-Two Interactive 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 Take-Two Interactive with a short position of Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and Thai Beverage.

Diversification Opportunities for Take-Two Interactive and Thai Beverage

-0.35

Correlation Coefficient

Take-Two Interactive  Thai Beverage

Very good diversification

The 3 months correlation between Take-Two and Thai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public and Take-Two Interactive 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 Take Two Interactive Software 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 Public has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and Thai Beverage go up and down completely randomly.

Pair Corralation between Take-Two Interactive and Thai Beverage

Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.37 times more return on investment than Thai Beverage. However, Take Two Interactive Software is 2.72 times less risky than Thai Beverage. It trades about 0.09 of its potential returns per unit of risk. Thai Beverage Public is currently generating about 0.01 per unit of risk. If you would invest  18,260  in Take Two Interactive Software on April 21, 2025 and sell it today you would earn a total of  1,614  from holding Take Two Interactive Software or generate 8.84% return on investment over 90 days.

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

Take Two Interactive Software  vs.  Thai Beverage Public

Take Two Interactive

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Take Two Interactive Software are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Take-Two Interactive may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Take-Two Interactive and Thai Beverage

The main advantage of trading using opposite Take-Two Interactive and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive 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 Take Two Interactive Software and Thai Beverage Public 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.