Correlation Between MCOT Public and Italian Thai
Can any of the company-specific risk be diversified away by investing in both MCOT Public and Italian Thai 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 Italian Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCOT Public and Italian Thai Development Public, you can compare the effects of market volatilities on MCOT Public and Italian Thai 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 Italian Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCOT Public and Italian Thai.
Diversification Opportunities for MCOT Public and Italian Thai
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCOT and Italian is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCOT Public and Italian Thai Development Publi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Italian Thai Develop 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 Italian Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Italian Thai Develop has no effect on the direction of MCOT Public i.e., MCOT Public and Italian Thai go up and down completely randomly.
Pair Corralation between MCOT Public and Italian Thai
Assuming the 90 days trading horizon MCOT Public is expected to generate 4.07 times more return on investment than Italian Thai. However, MCOT Public is 4.07 times more volatile than Italian Thai Development Public. It trades about 0.15 of its potential returns per unit of risk. Italian Thai Development Public is currently generating about -0.26 per unit of risk. If you would invest 452.00 in MCOT Public on September 4, 2024 and sell it today you would earn a total of 278.00 from holding MCOT Public or generate 61.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCOT Public vs. Italian Thai Development Publi
Performance |
| Timeline |
| MCOT Public |
| Italian Thai Develop |
MCOT Public and Italian Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCOT Public and Italian Thai
The main advantage of trading using opposite MCOT Public and Italian Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCOT Public position performs unexpectedly, Italian Thai 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 Italian Thai will offset losses from the drop in Italian Thai's long position.| MCOT Public vs. BEC World Public | MCOT Public vs. Major Cineplex Group | MCOT Public vs. Italian Thai Development Public | MCOT Public vs. Dynasty Ceramic 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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