Correlation Between MK Restaurant and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both MK Restaurant and Berli Jucker 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 MK Restaurant and Berli Jucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MK Restaurant Group and Berli Jucker Public, you can compare the effects of market volatilities on MK Restaurant and Berli Jucker 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 MK Restaurant with a short position of Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of MK Restaurant and Berli Jucker.
Diversification Opportunities for MK Restaurant and Berli Jucker
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MK Restaurant and Berli is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MK Restaurant Group and Berli Jucker Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker Public and MK Restaurant 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 MK Restaurant Group are associated (or correlated) with Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker Public has no effect on the direction of MK Restaurant i.e., MK Restaurant and Berli Jucker go up and down completely randomly.
Pair Corralation between MK Restaurant and Berli Jucker
Given the investment horizon of 90 days MK Restaurant Group is expected to under-perform the Berli Jucker. But the stock apears to be less risky and, when comparing its historical volatility, MK Restaurant Group is 1.26 times less risky than Berli Jucker. The stock trades about -0.1 of its potential returns per unit of risk. The Berli Jucker Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,221 in Berli Jucker Public on September 2, 2024 and sell it today you would lose (861.00) from holding Berli Jucker Public or give up 26.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MK Restaurant Group vs. Berli Jucker Public
Performance |
| Timeline |
| MK Restaurant Group |
| Berli Jucker Public |
MK Restaurant and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MK Restaurant and Berli Jucker
The main advantage of trading using opposite MK Restaurant and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MK Restaurant position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| MK Restaurant vs. Minor International Public | MK Restaurant vs. Home Product Center | MK Restaurant vs. CP ALL Public | MK Restaurant vs. Central Pattana Public |
| Berli Jucker vs. MK Restaurant Group | Berli Jucker vs. TRC Construction Public | Berli Jucker vs. Bangkok Expressway and | Berli Jucker vs. Lohakit Metal 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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