Correlation Between Lohakit Metal and Minor International
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Minor International 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 Minor International 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 Minor International Public, you can compare the effects of market volatilities on Lohakit Metal and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Minor International.
Diversification Opportunities for Lohakit Metal and Minor International
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohakit and Minor is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and Minor International go up and down completely randomly.
Pair Corralation between Lohakit Metal and Minor International
Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.75 times more return on investment than Minor International. However, Lohakit Metal Public is 1.33 times less risky than Minor International. It trades about -0.02 of its potential returns per unit of risk. Minor International Public is currently generating about -0.05 per unit of risk. If you would invest 391.00 in Lohakit Metal Public on September 2, 2024 and sell it today you would lose (15.00) from holding Lohakit Metal Public or give up 3.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Minor International Public
Performance |
| Timeline |
| Lohakit Metal Public |
| Minor International |
Lohakit Metal and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Minor International
The main advantage of trading using opposite Lohakit Metal and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International'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 |
| Minor International vs. TRC Construction Public | Minor International vs. Bangkok Expressway and | Minor International vs. Lohakit Metal Public | Minor International 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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