Correlation Between MCS Steel and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both MCS Steel and Phatra Leasing 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 MCS Steel and Phatra Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCS Steel Public and Phatra Leasing Public, you can compare the effects of market volatilities on MCS Steel and Phatra Leasing 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 MCS Steel with a short position of Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCS Steel and Phatra Leasing.
Diversification Opportunities for MCS Steel and Phatra Leasing
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCS and Phatra is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MCS Steel Public and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public and MCS Steel 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 MCS Steel Public are associated (or correlated) with Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of MCS Steel i.e., MCS Steel and Phatra Leasing go up and down completely randomly.
Pair Corralation between MCS Steel and Phatra Leasing
Assuming the 90 days trading horizon MCS Steel Public is expected to generate 0.99 times more return on investment than Phatra Leasing. However, MCS Steel Public is 1.01 times less risky than Phatra Leasing. It trades about 0.04 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about 0.04 per unit of risk. If you would invest 804.00 in MCS Steel Public on September 12, 2024 and sell it today you would lose (104.00) from holding MCS Steel Public or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.96% |
| Values | Daily Returns |
MCS Steel Public vs. Phatra Leasing Public
Performance |
| Timeline |
| MCS Steel Public |
| Phatra Leasing Public |
MCS Steel and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCS Steel and Phatra Leasing
The main advantage of trading using opposite MCS Steel and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCS Steel position performs unexpectedly, Phatra Leasing 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 Phatra Leasing will offset losses from the drop in Phatra Leasing's long position.| MCS Steel vs. Thantawan Industry Public | MCS Steel vs. The Erawan Group | MCS Steel vs. Jay Mart Public | MCS Steel vs. Airports of Thailand |
| Phatra Leasing vs. KGI Securities Public | Phatra Leasing vs. Lalin Property Public | Phatra Leasing vs. Hwa Fong Rubber | Phatra Leasing vs. MCS Steel 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |