Correlation Between MK Restaurant and Thaitheparos Public
Can any of the company-specific risk be diversified away by investing in both MK Restaurant and Thaitheparos 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 Thaitheparos 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 Thaitheparos Public, you can compare the effects of market volatilities on MK Restaurant and Thaitheparos 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 Thaitheparos Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MK Restaurant and Thaitheparos Public.
Diversification Opportunities for MK Restaurant and Thaitheparos Public
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MK Restaurant and Thaitheparos is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding MK Restaurant Group and Thaitheparos Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaitheparos 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 Thaitheparos Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaitheparos Public has no effect on the direction of MK Restaurant i.e., MK Restaurant and Thaitheparos Public go up and down completely randomly.
Pair Corralation between MK Restaurant and Thaitheparos Public
Given the investment horizon of 90 days MK Restaurant Group is expected to under-perform the Thaitheparos Public. But the stock apears to be less risky and, when comparing its historical volatility, MK Restaurant Group is 37.24 times less risky than Thaitheparos Public. The stock trades about -0.16 of its potential returns per unit of risk. The Thaitheparos Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,785 in Thaitheparos Public on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Thaitheparos Public or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
MK Restaurant Group vs. Thaitheparos Public
Performance |
| Timeline |
| MK Restaurant Group |
| Thaitheparos Public |
MK Restaurant and Thaitheparos Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MK Restaurant and Thaitheparos Public
The main advantage of trading using opposite MK Restaurant and Thaitheparos Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MK Restaurant position performs unexpectedly, Thaitheparos 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 Thaitheparos Public will offset losses from the drop in Thaitheparos Public'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 |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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