Correlation Between Apple and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Apple and Muangthai Capital 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 Apple and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Muangthai Capital Public, you can compare the effects of market volatilities on Apple and Muangthai Capital 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 Apple with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Muangthai Capital.
Diversification Opportunities for Apple and Muangthai Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apple and Muangthai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Muangthai Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muangthai Capital Public and Apple 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 Apple Inc are associated (or correlated) with Muangthai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muangthai Capital Public has no effect on the direction of Apple i.e., Apple and Muangthai Capital go up and down completely randomly.
Pair Corralation between Apple and Muangthai Capital
Given the investment horizon of 90 days Apple is expected to generate 36.86 times less return on investment than Muangthai Capital. But when comparing it to its historical volatility, Apple Inc is 44.04 times less risky than Muangthai Capital. It trades about 0.07 of its potential returns per unit of risk. Muangthai Capital Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,429 in Muangthai Capital Public on November 3, 2024 and sell it today you would lose (54.00) from holding Muangthai Capital Public or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Apple Inc vs. Muangthai Capital Public
Performance |
| Timeline |
| Apple Inc |
| Muangthai Capital Public |
Apple and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Muangthai Capital
The main advantage of trading using opposite Apple and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Muangthai Capital 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 Muangthai Capital will offset losses from the drop in Muangthai Capital's long position.The idea behind Apple Inc and Muangthai Capital 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.| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Gulf Energy Development | Muangthai Capital vs. Krungthai Card PCL | Muangthai Capital vs. Carabao Group Public |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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