Correlation Between Mena Transport and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both Mena Transport and KERRY EXPRESS 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 KERRY EXPRESS 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 KERRY EXPRESS, you can compare the effects of market volatilities on Mena Transport and KERRY EXPRESS 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 KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and KERRY EXPRESS.
Diversification Opportunities for Mena Transport and KERRY EXPRESS
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mena and KERRY is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS 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 KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of Mena Transport i.e., Mena Transport and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between Mena Transport and KERRY EXPRESS
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 0.72 times more return on investment than KERRY EXPRESS. However, Mena Transport Public is 1.4 times less risky than KERRY EXPRESS. It trades about 0.01 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.07 per unit of risk. If you would invest 137.00 in Mena Transport Public on September 3, 2024 and sell it today you would lose (15.00) from holding Mena Transport Public or give up 10.95% 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. KERRY EXPRESS
Performance |
| Timeline |
| Mena Transport Public |
| KERRY EXPRESS |
Mena Transport and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and KERRY EXPRESS
The main advantage of trading using opposite Mena Transport and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| Mena Transport vs. Mono Next Public | Mena Transport vs. Triple i Logistics | Mena Transport vs. Dynasty Ceramic Public | Mena Transport vs. The Erawan Group |
| KERRY EXPRESS vs. ABSOLUTE CLEAN ENERGY | KERRY EXPRESS vs. Mena Transport Public | KERRY EXPRESS vs. Ramkhamhaeng Hospital Public | KERRY EXPRESS vs. Sri panwa Hospitality |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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