Correlation Between Mega Lifesciences and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both Mega Lifesciences and Lohakit Metal 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 Mega Lifesciences and Lohakit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mega Lifesciences Public and Lohakit Metal Public, you can compare the effects of market volatilities on Mega Lifesciences and Lohakit Metal 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 Mega Lifesciences with a short position of Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Lifesciences and Lohakit Metal.
Diversification Opportunities for Mega Lifesciences and Lohakit Metal
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mega and Lohakit is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mega Lifesciences Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal Public and Mega Lifesciences 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 Mega Lifesciences Public are associated (or correlated) with Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of Mega Lifesciences i.e., Mega Lifesciences and Lohakit Metal go up and down completely randomly.
Pair Corralation between Mega Lifesciences and Lohakit Metal
Assuming the 90 days trading horizon Mega Lifesciences Public is expected to generate 1.48 times more return on investment than Lohakit Metal. However, Mega Lifesciences is 1.48 times more volatile than Lohakit Metal Public. It trades about -0.01 of its potential returns per unit of risk. Lohakit Metal Public is currently generating about -0.04 per unit of risk. If you would invest 3,886 in Mega Lifesciences Public on August 31, 2024 and sell it today you would lose (361.00) from holding Mega Lifesciences Public or give up 9.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mega Lifesciences Public vs. Lohakit Metal Public
Performance |
| Timeline |
| Mega Lifesciences Public |
| Lohakit Metal Public |
Mega Lifesciences and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Lifesciences and Lohakit Metal
The main advantage of trading using opposite Mega Lifesciences and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Lifesciences position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| Mega Lifesciences vs. AP Public | Mega Lifesciences vs. Advanced Information Technology | Mega Lifesciences vs. AJ Plast Public | Mega Lifesciences vs. Berli Jucker Public |
| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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