Correlation Between Matichon Public and Chiangmai Frozen
Can any of the company-specific risk be diversified away by investing in both Matichon Public and Chiangmai Frozen 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 Matichon Public and Chiangmai Frozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matichon Public and Chiangmai Frozen Foods, you can compare the effects of market volatilities on Matichon Public and Chiangmai Frozen 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 Matichon Public with a short position of Chiangmai Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matichon Public and Chiangmai Frozen.
Diversification Opportunities for Matichon Public and Chiangmai Frozen
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matichon and Chiangmai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Matichon Public and Chiangmai Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiangmai Frozen Foods and Matichon Public 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 Matichon Public are associated (or correlated) with Chiangmai Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiangmai Frozen Foods has no effect on the direction of Matichon Public i.e., Matichon Public and Chiangmai Frozen go up and down completely randomly.
Pair Corralation between Matichon Public and Chiangmai Frozen
Assuming the 90 days trading horizon Matichon Public is expected to generate 1.01 times less return on investment than Chiangmai Frozen. In addition to that, Matichon Public is 1.0 times more volatile than Chiangmai Frozen Foods. It trades about 0.06 of its total potential returns per unit of risk. Chiangmai Frozen Foods is currently generating about 0.06 per unit of volatility. If you would invest 208.00 in Chiangmai Frozen Foods on August 29, 2024 and sell it today you would lose (2.00) from holding Chiangmai Frozen Foods or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Matichon Public vs. Chiangmai Frozen Foods
Performance |
| Timeline |
| Matichon Public |
| Chiangmai Frozen Foods |
Matichon Public and Chiangmai Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matichon Public and Chiangmai Frozen
The main advantage of trading using opposite Matichon Public and Chiangmai Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matichon Public position performs unexpectedly, Chiangmai Frozen 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 Chiangmai Frozen will offset losses from the drop in Chiangmai Frozen's long position.| Matichon Public vs. MBK Public | Matichon Public vs. Laguna Resorts Hotels | Matichon Public vs. MK Real Estate | Matichon Public vs. LPN Development Public |
| Chiangmai Frozen vs. Surapon Foods Public | Chiangmai Frozen vs. Tipco Foods Public | Chiangmai Frozen vs. Tropical Canning 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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