Correlation Between MBK Public and Matichon Public
Can any of the company-specific risk be diversified away by investing in both MBK Public and Matichon Public 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 MBK Public and Matichon Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MBK Public and Matichon Public, you can compare the effects of market volatilities on MBK Public and Matichon Public 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 MBK Public with a short position of Matichon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBK Public and Matichon Public.
Diversification Opportunities for MBK Public and Matichon Public
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MBK and Matichon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MBK Public and Matichon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matichon Public and MBK 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 MBK Public are associated (or correlated) with Matichon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matichon Public has no effect on the direction of MBK Public i.e., MBK Public and Matichon Public go up and down completely randomly.
Pair Corralation between MBK Public and Matichon Public
Assuming the 90 days trading horizon MBK Public is expected to generate 0.33 times more return on investment than Matichon Public. However, MBK Public is 3.06 times less risky than Matichon Public. It trades about -0.08 of its potential returns per unit of risk. Matichon Public is currently generating about -0.05 per unit of risk. If you would invest 1,840 in MBK Public on November 27, 2024 and sell it today you would lose (40.00) from holding MBK Public or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MBK Public vs. Matichon Public
Performance |
| Timeline |
| MBK Public |
| Matichon Public |
MBK Public and Matichon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBK Public and Matichon Public
The main advantage of trading using opposite MBK Public and Matichon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBK Public position performs unexpectedly, Matichon Public 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 Matichon Public will offset losses from the drop in Matichon Public's long position.| MBK Public vs. Land and Houses | MBK Public vs. Central Pattana Public | MBK Public vs. AP Public | MBK Public vs. Quality Houses Public |
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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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