Correlation Between MCOT Public and Matichon Public
Can any of the company-specific risk be diversified away by investing in both MCOT 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 MCOT 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 MCOT Public and Matichon Public, you can compare the effects of market volatilities on MCOT 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 MCOT Public with a short position of Matichon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCOT Public and Matichon Public.
Diversification Opportunities for MCOT Public and Matichon Public
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCOT and Matichon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MCOT Public and Matichon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matichon 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 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 MCOT Public i.e., MCOT Public and Matichon Public go up and down completely randomly.
Pair Corralation between MCOT Public and Matichon Public
Assuming the 90 days trading horizon MCOT Public is expected to under-perform the Matichon Public. In addition to that, MCOT Public is 1.83 times more volatile than Matichon Public. It trades about -0.06 of its total potential returns per unit of risk. Matichon Public is currently generating about -0.07 per unit of volatility. If you would invest 670.00 in Matichon Public on September 3, 2024 and sell it today you would lose (55.00) from holding Matichon Public or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCOT Public vs. Matichon Public
Performance |
| Timeline |
| MCOT Public |
| Matichon Public |
MCOT Public and Matichon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCOT Public and Matichon Public
The main advantage of trading using opposite MCOT Public and Matichon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCOT 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.| 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 |
| Matichon Public vs. MBK Public | Matichon Public vs. Laguna Resorts Hotels | Matichon Public vs. MK Real Estate | Matichon Public vs. LPN Development 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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