Correlation Between MTrack Energy and ThaiDEX SET
Can any of the company-specific risk be diversified away by investing in both MTrack Energy and ThaiDEX SET 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 MTrack Energy and ThaiDEX SET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTrack Energy ETF and ThaiDEX SET High, you can compare the effects of market volatilities on MTrack Energy and ThaiDEX SET 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 MTrack Energy with a short position of ThaiDEX SET. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTrack Energy and ThaiDEX SET.
Diversification Opportunities for MTrack Energy and ThaiDEX SET
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MTrack and ThaiDEX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding MTrack Energy ETF and ThaiDEX SET High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDEX SET High and MTrack Energy 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 MTrack Energy ETF are associated (or correlated) with ThaiDEX SET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDEX SET High has no effect on the direction of MTrack Energy i.e., MTrack Energy and ThaiDEX SET go up and down completely randomly.
Pair Corralation between MTrack Energy and ThaiDEX SET
Assuming the 90 days trading horizon MTrack Energy ETF is expected to under-perform the ThaiDEX SET. In addition to that, MTrack Energy is 1.31 times more volatile than ThaiDEX SET High. It trades about -0.12 of its total potential returns per unit of risk. ThaiDEX SET High is currently generating about -0.1 per unit of volatility. If you would invest 1,095 in ThaiDEX SET High on August 29, 2024 and sell it today you would lose (18.00) from holding ThaiDEX SET High or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTrack Energy ETF vs. ThaiDEX SET High
Performance |
| Timeline |
| MTrack Energy ETF |
| ThaiDEX SET High |
MTrack Energy and ThaiDEX SET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTrack Energy and ThaiDEX SET
The main advantage of trading using opposite MTrack Energy and ThaiDEX SET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTrack Energy position performs unexpectedly, ThaiDEX SET 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 ThaiDEX SET will offset losses from the drop in ThaiDEX SET's long position.| MTrack Energy vs. United Hero ETF | MTrack Energy vs. BCAP SET100 | MTrack Energy vs. WISE KTAM CSI | MTrack Energy vs. KTAM Gold ETF |
| ThaiDEX SET vs. United Hero ETF | ThaiDEX SET vs. BCAP SET100 | ThaiDEX SET vs. WISE KTAM CSI | ThaiDEX SET vs. KTAM Gold ETF |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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