Correlation Between Multibax Public and Ngern Tid
Can any of the company-specific risk be diversified away by investing in both Multibax Public and Ngern Tid 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 Ngern Tid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multibax Public and Ngern Tid Lor, you can compare the effects of market volatilities on Multibax Public and Ngern Tid 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 Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multibax Public and Ngern Tid.
Diversification Opportunities for Multibax Public and Ngern Tid
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Multibax and Ngern is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Multibax Public and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor 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 Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of Multibax Public i.e., Multibax Public and Ngern Tid go up and down completely randomly.
Pair Corralation between Multibax Public and Ngern Tid
Assuming the 90 days trading horizon Multibax Public is expected to under-perform the Ngern Tid. In addition to that, Multibax Public is 1.1 times more volatile than Ngern Tid Lor. It trades about -0.46 of its total potential returns per unit of risk. Ngern Tid Lor is currently generating about 0.1 per unit of volatility. If you would invest 1,680 in Ngern Tid Lor on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Ngern Tid Lor or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Multibax Public vs. Ngern Tid Lor
Performance |
| Timeline |
| Multibax Public |
| Ngern Tid Lor |
Multibax Public and Ngern Tid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multibax Public and Ngern Tid
The main advantage of trading using opposite Multibax Public and Ngern Tid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multibax Public position performs unexpectedly, Ngern Tid 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 Ngern Tid will offset losses from the drop in Ngern Tid's long position.| Multibax Public vs. AJ Plast Public | Multibax Public vs. Thai Metal Drum | Multibax Public vs. Thantawan Industry Public | Multibax Public vs. Thai Film Industries |
| Ngern Tid vs. Multibax Public | Ngern Tid vs. Forth Smart Service | Ngern Tid vs. LPN Development Public | Ngern Tid vs. Jasmine International 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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