Correlation Between Mena Transport and ALL ENERGY
Can any of the company-specific risk be diversified away by investing in both Mena Transport and ALL ENERGY 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 Mena Transport and ALL ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mena Transport Public and ALL ENERGY UTILITIES, you can compare the effects of market volatilities on Mena Transport and ALL ENERGY 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 Mena Transport with a short position of ALL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and ALL ENERGY.
Diversification Opportunities for Mena Transport and ALL ENERGY
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mena and ALL is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and ALL ENERGY UTILITIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALL ENERGY UTILITIES and Mena Transport 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 Mena Transport Public are associated (or correlated) with ALL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALL ENERGY UTILITIES has no effect on the direction of Mena Transport i.e., Mena Transport and ALL ENERGY go up and down completely randomly.
Pair Corralation between Mena Transport and ALL ENERGY
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 0.72 times more return on investment than ALL ENERGY. However, Mena Transport Public is 1.38 times less risky than ALL ENERGY. It trades about -0.02 of its potential returns per unit of risk. ALL ENERGY UTILITIES is currently generating about -0.25 per unit of risk. If you would invest 126.00 in Mena Transport Public on August 31, 2024 and sell it today you would lose (4.00) from holding Mena Transport Public or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. ALL ENERGY UTILITIES
Performance |
| Timeline |
| Mena Transport Public |
| ALL ENERGY UTILITIES |
Mena Transport and ALL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and ALL ENERGY
The main advantage of trading using opposite Mena Transport and ALL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, ALL ENERGY 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 ALL ENERGY will offset losses from the drop in ALL ENERGY's long position.| Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Karmarts Public | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC Public |
| ALL ENERGY vs. AP Public | ALL ENERGY vs. TRC Construction Public | ALL ENERGY vs. Bangkok Expressway and | ALL ENERGY vs. Lohakit Metal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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