Correlation Between Masterkool International and Filter Vision
Can any of the company-specific risk be diversified away by investing in both Masterkool International and Filter Vision 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 Masterkool International and Filter Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masterkool International Public and Filter Vision Public, you can compare the effects of market volatilities on Masterkool International and Filter Vision 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 Masterkool International with a short position of Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterkool International and Filter Vision.
Diversification Opportunities for Masterkool International and Filter Vision
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Masterkool and Filter is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Masterkool International Publi and Filter Vision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filter Vision Public and Masterkool International 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 Masterkool International Public are associated (or correlated) with Filter Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filter Vision Public has no effect on the direction of Masterkool International i.e., Masterkool International and Filter Vision go up and down completely randomly.
Pair Corralation between Masterkool International and Filter Vision
Assuming the 90 days trading horizon Masterkool International Public is expected to generate 20.01 times more return on investment than Filter Vision. However, Masterkool International is 20.01 times more volatile than Filter Vision Public. It trades about 0.04 of its potential returns per unit of risk. Filter Vision Public is currently generating about -0.04 per unit of risk. If you would invest 48.00 in Masterkool International Public on September 3, 2024 and sell it today you would lose (14.00) from holding Masterkool International Public or give up 29.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterkool International Publi vs. Filter Vision Public
Performance |
| Timeline |
| Masterkool International |
| Filter Vision Public |
Masterkool International and Filter Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterkool International and Filter Vision
The main advantage of trading using opposite Masterkool International and Filter Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterkool International position performs unexpectedly, Filter Vision 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 Filter Vision will offset losses from the drop in Filter Vision's long position.| Masterkool International vs. G Capital Public | Masterkool International vs. E for L | Masterkool International vs. Filter Vision Public | Masterkool International vs. The Erawan Group |
| Filter Vision vs. G Capital Public | Filter Vision vs. Cho Thavee Public | Filter Vision vs. E for L | Filter Vision vs. East Coast Furnitech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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