Correlation Between Forth Public and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Forth Public 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 Forth Public and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forth Public and Muangthai Capital Public, you can compare the effects of market volatilities on Forth Public 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 Forth Public with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forth Public and Muangthai Capital.
Diversification Opportunities for Forth Public and Muangthai Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Forth and Muangthai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Forth 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 Forth Public 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 Forth 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 Forth Public i.e., Forth Public and Muangthai Capital go up and down completely randomly.
Pair Corralation between Forth Public and Muangthai Capital
Assuming the 90 days trading horizon Forth Public is expected to under-perform the Muangthai Capital. In addition to that, Forth Public is 1.59 times more volatile than Muangthai Capital Public. It trades about -0.15 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 5,075 in Muangthai Capital Public on September 1, 2024 and sell it today you would lose (150.00) from holding Muangthai Capital Public or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forth Public vs. Muangthai Capital Public
Performance |
| Timeline |
| Forth Public |
| Muangthai Capital Public |
Forth Public and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forth Public and Muangthai Capital
The main advantage of trading using opposite Forth Public and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forth Public 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.| Forth Public vs. AP Public | Forth Public vs. Jasmine International Public | Forth Public vs. Asia Plus Group | Forth Public vs. Bangchak Public |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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