Correlation Between MCOT Public and Dcon Products
Can any of the company-specific risk be diversified away by investing in both MCOT Public and Dcon Products 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 MCOT Public and Dcon Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCOT Public and Dcon Products Public, you can compare the effects of market volatilities on MCOT Public and Dcon Products 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 MCOT Public with a short position of Dcon Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCOT Public and Dcon Products.
Diversification Opportunities for MCOT Public and Dcon Products
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCOT and Dcon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MCOT Public and Dcon Products Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dcon Products Public and MCOT 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 MCOT Public are associated (or correlated) with Dcon Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dcon Products Public has no effect on the direction of MCOT Public i.e., MCOT Public and Dcon Products go up and down completely randomly.
Pair Corralation between MCOT Public and Dcon Products
Assuming the 90 days trading horizon MCOT Public is expected to under-perform the Dcon Products. In addition to that, MCOT Public is 2.62 times more volatile than Dcon Products Public. It trades about -0.25 of its total potential returns per unit of risk. Dcon Products Public is currently generating about 0.01 per unit of volatility. If you would invest 29.00 in Dcon Products Public on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Dcon Products Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MCOT Public vs. Dcon Products Public
Performance |
| Timeline |
| MCOT Public |
| Dcon Products Public |
MCOT Public and Dcon Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCOT Public and Dcon Products
The main advantage of trading using opposite MCOT Public and Dcon Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCOT Public position performs unexpectedly, Dcon Products 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 Dcon Products will offset losses from the drop in Dcon Products' long position.| MCOT Public vs. Siamgas and Petrochemicals | MCOT Public vs. Namyong Terminal PCL | MCOT Public vs. The Erawan Group | MCOT Public vs. Autocorp Holding Public |
| Dcon Products vs. Asia Metal Public | Dcon Products vs. Chonburi Concrete Product | Dcon Products vs. Asia Plus Group | Dcon Products vs. CSP Steel Center |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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