Correlation Between Mena Transport and Asia Sermkij
Can any of the company-specific risk be diversified away by investing in both Mena Transport and Asia Sermkij 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 Asia Sermkij 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 Asia Sermkij Leasing, you can compare the effects of market volatilities on Mena Transport and Asia Sermkij 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 Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Asia Sermkij.
Diversification Opportunities for Mena Transport and Asia Sermkij
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mena and Asia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing 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 Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of Mena Transport i.e., Mena Transport and Asia Sermkij go up and down completely randomly.
Pair Corralation between Mena Transport and Asia Sermkij
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 1.13 times more return on investment than Asia Sermkij. However, Mena Transport is 1.13 times more volatile than Asia Sermkij Leasing. It trades about 0.04 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about -0.32 per unit of risk. If you would invest 122.00 in Mena Transport Public on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Mena Transport Public or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mena Transport Public vs. Asia Sermkij Leasing
Performance |
| Timeline |
| Mena Transport Public |
| Asia Sermkij Leasing |
Mena Transport and Asia Sermkij Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Asia Sermkij
The main advantage of trading using opposite Mena Transport and Asia Sermkij positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, Asia Sermkij 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 Asia Sermkij will offset losses from the drop in Asia Sermkij's long position.| Mena Transport vs. Namyong Terminal PCL | Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC Public |
| Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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