Correlation Between Major Cineplex and Matching Maximize
Can any of the company-specific risk be diversified away by investing in both Major Cineplex and Matching Maximize 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 Major Cineplex and Matching Maximize into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Major Cineplex Group and Matching Maximize Solution, you can compare the effects of market volatilities on Major Cineplex and Matching Maximize 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 Major Cineplex with a short position of Matching Maximize. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and Matching Maximize.
Diversification Opportunities for Major Cineplex and Matching Maximize
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Major and Matching is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Group and Matching Maximize Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matching Maximize and Major Cineplex 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 Major Cineplex Group are associated (or correlated) with Matching Maximize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matching Maximize has no effect on the direction of Major Cineplex i.e., Major Cineplex and Matching Maximize go up and down completely randomly.
Pair Corralation between Major Cineplex and Matching Maximize
Assuming the 90 days trading horizon Major Cineplex Group is expected to generate 0.4 times more return on investment than Matching Maximize. However, Major Cineplex Group is 2.53 times less risky than Matching Maximize. It trades about 0.05 of its potential returns per unit of risk. Matching Maximize Solution is currently generating about -0.11 per unit of risk. If you would invest 1,430 in Major Cineplex Group on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Major Cineplex Group or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Major Cineplex Group vs. Matching Maximize Solution
Performance |
| Timeline |
| Major Cineplex Group |
| Matching Maximize |
Major Cineplex and Matching Maximize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and Matching Maximize
The main advantage of trading using opposite Major Cineplex and Matching Maximize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex position performs unexpectedly, Matching Maximize 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 Matching Maximize will offset losses from the drop in Matching Maximize's long position.| Major Cineplex vs. SRI TRANG GLOVES | Major Cineplex vs. AEON Thana Sinsap | Major Cineplex vs. Asian Alliance International | Major Cineplex vs. Sikarin Public |
| Matching Maximize vs. SRI TRANG GLOVES | Matching Maximize vs. AEON Thana Sinsap | Matching Maximize vs. Asian Alliance International | Matching Maximize vs. Sikarin 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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