Correlation Between MC Group and Central Pattana
Can any of the company-specific risk be diversified away by investing in both MC Group and Central Pattana 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 MC Group and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MC Group Public and Central Pattana Public, you can compare the effects of market volatilities on MC Group and Central Pattana 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 MC Group with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Group and Central Pattana.
Diversification Opportunities for MC Group and Central Pattana
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MC Group and Central is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding MC Group Public and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and MC Group 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 MC Group Public are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of MC Group i.e., MC Group and Central Pattana go up and down completely randomly.
Pair Corralation between MC Group and Central Pattana
Assuming the 90 days horizon MC Group Public is expected to generate 0.75 times more return on investment than Central Pattana. However, MC Group Public is 1.33 times less risky than Central Pattana. It trades about -0.04 of its potential returns per unit of risk. Central Pattana Public is currently generating about -0.2 per unit of risk. If you would invest 1,100 in MC Group Public on September 12, 2024 and sell it today you would lose (10.00) from holding MC Group Public or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MC Group Public vs. Central Pattana Public
Performance |
| Timeline |
| MC Group Public |
| Central Pattana Public |
MC Group and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MC Group and Central Pattana
The main advantage of trading using opposite MC Group and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MC Group position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| MC Group vs. Home Product Center | MC Group vs. LPN Development Public | MC Group vs. Mega Lifesciences Public | MC Group vs. Ichitan Group 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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