Correlation Between Thai Beverage and Gladstone Commercial

Can any of the company-specific risk be diversified away by investing in both Thai Beverage and Gladstone Commercial 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 Gladstone Commercial 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 Gladstone Commercial, you can compare the effects of market volatilities on Thai Beverage and Gladstone Commercial 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 Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Beverage and Gladstone Commercial.

Diversification Opportunities for Thai Beverage and Gladstone Commercial

0.0

Correlation Coefficient

Thai Beverage  Gladstone Commercial

Pay attention - limited upside

The 3 months correlation between Thai and Gladstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Beverage PCL and Gladstone Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial 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 Gladstone Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Commercial has no effect on the direction of Thai Beverage i.e., Thai Beverage and Gladstone Commercial go up and down completely randomly.

Pair Corralation between Thai Beverage and Gladstone Commercial

Assuming the 90 days horizon Thai Beverage PCL is expected to generate 1.58 times more return on investment than Gladstone Commercial. However, Thai Beverage is 1.58 times more volatile than Gladstone Commercial. It trades about 0.11 of its potential returns per unit of risk. Gladstone Commercial is currently generating about -0.03 per unit of risk. If you would invest  3,288  in Thai Beverage PCL on May 7, 2025 and sell it today you would earn a total of  406.00  from holding Thai Beverage PCL or generate 12.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Thai Beverage PCL  vs.  Gladstone Commercial

Thai Beverage PCL

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Beverage PCL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Thai Beverage showed solid returns over the last few months and may actually be approaching a breakup point.

Gladstone Commercial

Risk-Adjusted Performance

Weakest

Over the last 90 days Gladstone Commercial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Gladstone Commercial is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Thai Beverage and Gladstone Commercial

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

The idea behind Thai Beverage PCL and Gladstone Commercial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.