Correlation Between Land and MBK Public
Can any of the company-specific risk be diversified away by investing in both Land and MBK Public 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 Land and MBK Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land and Houses and MBK Public, you can compare the effects of market volatilities on Land and MBK Public 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 Land with a short position of MBK Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land and MBK Public.
Diversification Opportunities for Land and MBK Public
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Land and MBK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Land and Houses and MBK Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBK Public and Land 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 Land and Houses are associated (or correlated) with MBK Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBK Public has no effect on the direction of Land i.e., Land and MBK Public go up and down completely randomly.
Pair Corralation between Land and MBK Public
Assuming the 90 days horizon Land and Houses is expected to under-perform the MBK Public. In addition to that, Land is 1.04 times more volatile than MBK Public. It trades about -0.09 of its total potential returns per unit of risk. MBK Public is currently generating about 0.05 per unit of volatility. If you would invest 1,688 in MBK Public on September 3, 2024 and sell it today you would earn a total of 202.00 from holding MBK Public or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land and Houses vs. MBK Public
Performance |
| Timeline |
| Land and Houses |
| MBK Public |
Land and MBK Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land and MBK Public
The main advantage of trading using opposite Land and MBK Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land position performs unexpectedly, MBK Public 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 MBK Public will offset losses from the drop in MBK Public's long position.The idea behind Land and Houses and MBK Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MBK Public vs. Land and Houses | MBK Public vs. Central Pattana Public | MBK Public vs. AP Public | MBK Public vs. Quality Houses 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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