Correlation Between Lohakit Metal and MK Restaurant
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and MK Restaurant 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 Lohakit Metal and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and MK Restaurant Group, you can compare the effects of market volatilities on Lohakit Metal and MK Restaurant 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 Lohakit Metal with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and MK Restaurant.
Diversification Opportunities for Lohakit Metal and MK Restaurant
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohakit and MK Restaurant is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and MK Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MK Restaurant Group and Lohakit Metal 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 Lohakit Metal Public are associated (or correlated) with MK Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MK Restaurant Group has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and MK Restaurant go up and down completely randomly.
Pair Corralation between Lohakit Metal and MK Restaurant
Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.38 times more return on investment than MK Restaurant. However, Lohakit Metal Public is 2.61 times less risky than MK Restaurant. It trades about 0.0 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.2 per unit of risk. If you would invest 376.00 in Lohakit Metal Public on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Lohakit Metal Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. MK Restaurant Group
Performance |
| Timeline |
| Lohakit Metal Public |
| MK Restaurant Group |
Lohakit Metal and MK Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and MK Restaurant
The main advantage of trading using opposite Lohakit Metal and MK Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, MK Restaurant 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 MK Restaurant will offset losses from the drop in MK Restaurant's long position.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. TRC Construction Public |
| MK Restaurant vs. TRC Construction Public | MK Restaurant vs. Bangkok Expressway and | MK Restaurant vs. Lohakit Metal Public | MK Restaurant vs. Gunkul Engineering 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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