Correlation Between MCS Steel and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both MCS Steel and Ratchthani 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 Ratchthani 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 Ratchthani Leasing Public, you can compare the effects of market volatilities on MCS Steel and Ratchthani 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 Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCS Steel and Ratchthani Leasing.
Diversification Opportunities for MCS Steel and Ratchthani Leasing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MCS and Ratchthani is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MCS Steel Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani 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 Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of MCS Steel i.e., MCS Steel and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between MCS Steel and Ratchthani Leasing
Assuming the 90 days trading horizon MCS Steel Public is expected to generate 1.0 times more return on investment than Ratchthani Leasing. However, MCS Steel Public is 1.0 times less risky than Ratchthani Leasing. It trades about 0.06 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.06 per unit of risk. If you would invest 626.00 in MCS Steel Public on October 22, 2024 and sell it today you would earn a total of 4.00 from holding MCS Steel Public or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.54% |
| Values | Daily Returns |
MCS Steel Public vs. Ratchthani Leasing Public
Performance |
| Timeline |
| MCS Steel Public |
| Ratchthani Leasing Public |
MCS Steel and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCS Steel and Ratchthani Leasing
The main advantage of trading using opposite MCS Steel and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCS Steel position performs unexpectedly, Ratchthani 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.| MCS Steel vs. Lalin Property Public | MCS Steel vs. Land and Houses | MCS Steel vs. Banpu Public | MCS Steel vs. TISCO Financial Group |
| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |