Correlation Between MC Group and Samart Public
Can any of the company-specific risk be diversified away by investing in both MC Group and Samart 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 MC Group and Samart Public 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 Samart Public, you can compare the effects of market volatilities on MC Group and Samart 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 MC Group with a short position of Samart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Group and Samart Public.
Diversification Opportunities for MC Group and Samart Public
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MC Group and Samart is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MC Group Public and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart 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 Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of MC Group i.e., MC Group and Samart Public go up and down completely randomly.
Pair Corralation between MC Group and Samart Public
Assuming the 90 days horizon MC Group Public is expected to under-perform the Samart Public. But the stock apears to be less risky and, when comparing its historical volatility, MC Group Public is 2.02 times less risky than Samart Public. The stock trades about -0.16 of its potential returns per unit of risk. The Samart Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Samart Public on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Samart Public or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MC Group Public vs. Samart Public
Performance |
| Timeline |
| MC Group Public |
| Samart Public |
MC Group and Samart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MC Group and Samart Public
The main advantage of trading using opposite MC Group and Samart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MC Group position performs unexpectedly, Samart 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 Samart Public will offset losses from the drop in Samart Public's long position.| MC Group vs. Hwa Fong Rubber | MC Group vs. AAPICO Hitech Public | MC Group vs. Haad Thip Public | MC Group vs. Italian Thai Development Public |
| Samart Public vs. Land and Houses | Samart Public vs. Delta Electronics Public | Samart Public vs. The Siam Cement | Samart Public vs. Bangkok Bank 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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