Correlation Between Lohakit Metal and MC Group
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and MC Group 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 MC Group 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 MC Group Public, you can compare the effects of market volatilities on Lohakit Metal and MC Group 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 MC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and MC Group.
Diversification Opportunities for Lohakit Metal and MC Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohakit and MC Group is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and MC Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Group Public 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 MC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Group Public has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and MC Group go up and down completely randomly.
Pair Corralation between Lohakit Metal and MC Group
Assuming the 90 days trading horizon Lohakit Metal Public is expected to under-perform the MC Group. But the stock apears to be less risky and, when comparing its historical volatility, Lohakit Metal Public is 1.28 times less risky than MC Group. The stock trades about -0.02 of its potential returns per unit of risk. The MC Group Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,083 in MC Group Public on September 1, 2024 and sell it today you would lose (3.00) from holding MC Group Public or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Lohakit Metal Public vs. MC Group Public
Performance |
| Timeline |
| Lohakit Metal Public |
| MC Group Public |
Lohakit Metal and MC Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and MC Group
The main advantage of trading using opposite Lohakit Metal and MC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, MC Group 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 MC Group will offset losses from the drop in MC Group's long position.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
| MC Group vs. TRC Construction Public | MC Group vs. Bangkok Expressway and | MC Group vs. Lohakit Metal Public | MC Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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