Correlation Between MK Restaurant and Surapon Foods
Can any of the company-specific risk be diversified away by investing in both MK Restaurant and Surapon Foods 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 Surapon Foods 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 Surapon Foods Public, you can compare the effects of market volatilities on MK Restaurant and Surapon Foods 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 Surapon Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MK Restaurant and Surapon Foods.
Diversification Opportunities for MK Restaurant and Surapon Foods
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MK Restaurant and Surapon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MK Restaurant Group and Surapon Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surapon Foods 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 Surapon Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surapon Foods Public has no effect on the direction of MK Restaurant i.e., MK Restaurant and Surapon Foods go up and down completely randomly.
Pair Corralation between MK Restaurant and Surapon Foods
Given the investment horizon of 90 days MK Restaurant Group is expected to under-perform the Surapon Foods. But the stock apears to be less risky and, when comparing its historical volatility, MK Restaurant Group is 50.79 times less risky than Surapon Foods. The stock trades about -0.1 of its potential returns per unit of risk. The Surapon Foods Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Surapon Foods Public on September 2, 2024 and sell it today you would lose (85.00) from holding Surapon Foods Public or give up 10.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MK Restaurant Group vs. Surapon Foods Public
Performance |
| Timeline |
| MK Restaurant Group |
| Surapon Foods Public |
MK Restaurant and Surapon Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MK Restaurant and Surapon Foods
The main advantage of trading using opposite MK Restaurant and Surapon Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MK Restaurant position performs unexpectedly, Surapon Foods 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 Surapon Foods will offset losses from the drop in Surapon Foods' 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 |
| Surapon Foods vs. MK Restaurant Group | Surapon Foods vs. TRC Construction Public | Surapon Foods vs. Bangkok Expressway and | Surapon Foods 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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