Correlation Between MK Restaurant and RS Public
Can any of the company-specific risk be diversified away by investing in both MK Restaurant and RS 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 MK Restaurant and RS Public 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 RS Public, you can compare the effects of market volatilities on MK Restaurant and RS 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 MK Restaurant with a short position of RS Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MK Restaurant and RS Public.
Diversification Opportunities for MK Restaurant and RS Public
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MK Restaurant and RS-R is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MK Restaurant Group and RS Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RS 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 RS Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RS Public has no effect on the direction of MK Restaurant i.e., MK Restaurant and RS Public go up and down completely randomly.
Pair Corralation between MK Restaurant and RS Public
Given the investment horizon of 90 days MK Restaurant Group is expected to generate 0.42 times more return on investment than RS Public. However, MK Restaurant Group is 2.39 times less risky than RS Public. It trades about -0.2 of its potential returns per unit of risk. RS Public is currently generating about -0.23 per unit of risk. If you would invest 2,650 in MK Restaurant Group on August 31, 2024 and sell it today you would lose (200.00) from holding MK Restaurant Group or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MK Restaurant Group vs. RS Public
Performance |
| Timeline |
| MK Restaurant Group |
| RS Public |
MK Restaurant and RS Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MK Restaurant and RS Public
The main advantage of trading using opposite MK Restaurant and RS Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MK Restaurant position performs unexpectedly, RS 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 RS Public will offset losses from the drop in RS Public's long position.| MK Restaurant vs. TRC Construction Public | MK Restaurant vs. Bangkok Expressway and | MK Restaurant vs. Lohakit Metal Public | MK Restaurant vs. Gunkul Engineering Public |
| RS Public vs. Major Cineplex Group | RS Public vs. Yggdrazil Group Public | RS Public vs. The Erawan Group | RS Public vs. Autocorp Holding 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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