Correlation Between Forth Smart and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Forth Smart 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 Smart 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 Smart Service and Muangthai Capital Public, you can compare the effects of market volatilities on Forth Smart 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 Smart with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forth Smart and Muangthai Capital.
Diversification Opportunities for Forth Smart and Muangthai Capital
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forth and Muangthai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Forth Smart Service 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 Smart 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 Smart Service 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 Smart i.e., Forth Smart and Muangthai Capital go up and down completely randomly.
Pair Corralation between Forth Smart and Muangthai Capital
Assuming the 90 days trading horizon Forth Smart Service is expected to generate 3.71 times more return on investment than Muangthai Capital. However, Forth Smart is 3.71 times more volatile than Muangthai Capital Public. It trades about 0.18 of its potential returns per unit of risk. Muangthai Capital Public is currently generating about 0.13 per unit of risk. If you would invest 660.00 in Forth Smart Service on September 12, 2024 and sell it today you would earn a total of 160.00 from holding Forth Smart Service or generate 24.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forth Smart Service vs. Muangthai Capital Public
Performance |
| Timeline |
| Forth Smart Service |
| Muangthai Capital Public |
Forth Smart and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forth Smart and Muangthai Capital
The main advantage of trading using opposite Forth Smart and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forth Smart 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 Smart vs. Forth Public | Forth Smart vs. Hana Microelectronics Public | Forth Smart vs. AP Public | Forth Smart vs. Home Product Center |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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