Correlation Between Multibax Public and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Multibax Public and Micro Leasing 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 Multibax Public and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multibax Public and Micro Leasing Public, you can compare the effects of market volatilities on Multibax Public and Micro Leasing 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 Multibax Public with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multibax Public and Micro Leasing.
Diversification Opportunities for Multibax Public and Micro Leasing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multibax and Micro is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Multibax Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Multibax 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 Multibax Public are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Multibax Public i.e., Multibax Public and Micro Leasing go up and down completely randomly.
Pair Corralation between Multibax Public and Micro Leasing
Assuming the 90 days trading horizon Multibax Public is expected to under-perform the Micro Leasing. In addition to that, Multibax Public is 1.14 times more volatile than Micro Leasing Public. It trades about -0.42 of its total potential returns per unit of risk. Micro Leasing Public is currently generating about -0.34 per unit of volatility. If you would invest 139.00 in Micro Leasing Public on September 12, 2024 and sell it today you would lose (30.00) from holding Micro Leasing Public or give up 21.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multibax Public vs. Micro Leasing Public
Performance |
| Timeline |
| Multibax Public |
| Micro Leasing Public |
Multibax Public and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multibax Public and Micro Leasing
The main advantage of trading using opposite Multibax Public and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multibax Public position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Multibax Public vs. Lease IT Public | Multibax Public vs. MCS Steel Public | Multibax Public vs. Kingsmen CMTI Public | Multibax Public vs. Moong Pattana International |
| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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