Correlation Between Amanah Leasing and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Amanah Leasing 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 Amanah Leasing and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanah Leasing Public and Muangthai Capital Public, you can compare the effects of market volatilities on Amanah Leasing 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 Amanah Leasing with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Muangthai Capital.
Diversification Opportunities for Amanah Leasing and Muangthai Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amanah and Muangthai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing Public 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 Amanah Leasing 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 Amanah Leasing Public 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 Amanah Leasing i.e., Amanah Leasing and Muangthai Capital go up and down completely randomly.
Pair Corralation between Amanah Leasing and Muangthai Capital
Assuming the 90 days trading horizon Amanah Leasing is expected to generate 1.09 times less return on investment than Muangthai Capital. In addition to that, Amanah Leasing is 1.0 times more volatile than Muangthai Capital Public. It trades about 0.05 of its total potential returns per unit of risk. Muangthai Capital Public is currently generating about 0.05 per unit of volatility. If you would invest 3,957 in Muangthai Capital Public on August 28, 2024 and sell it today you would earn a total of 1,068 from holding Muangthai Capital Public or generate 26.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Amanah Leasing Public vs. Muangthai Capital Public
Performance |
| Timeline |
| Amanah Leasing Public |
| Muangthai Capital Public |
Amanah Leasing and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanah Leasing and Muangthai Capital
The main advantage of trading using opposite Amanah Leasing and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing 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.| Amanah Leasing vs. Srisawad Power 1979 | Amanah Leasing vs. JMT Network Services | Amanah Leasing vs. AEON Thana Sinsap | Amanah Leasing vs. Ratchthani Leasing Public |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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