Correlation Between Mena Transport and Mono Next
Can any of the company-specific risk be diversified away by investing in both Mena Transport and Mono Next 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 Mono Next 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 Mono Next Public, you can compare the effects of market volatilities on Mena Transport and Mono Next 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 Mono Next. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Mono Next.
Diversification Opportunities for Mena Transport and Mono Next
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mena and Mono is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Mono Next Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mono Next Public 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 Mono Next. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mono Next Public has no effect on the direction of Mena Transport i.e., Mena Transport and Mono Next go up and down completely randomly.
Pair Corralation between Mena Transport and Mono Next
Assuming the 90 days trading horizon Mena Transport Public is expected to under-perform the Mono Next. But the stock apears to be less risky and, when comparing its historical volatility, Mena Transport Public is 1.67 times less risky than Mono Next. The stock trades about -0.07 of its potential returns per unit of risk. The Mono Next Public is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Mono Next Public on September 3, 2024 and sell it today you would earn a total of 198.00 from holding Mono Next Public or generate 267.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. Mono Next Public
Performance |
| Timeline |
| Mena Transport Public |
| Mono Next Public |
Mena Transport and Mono Next Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Mono Next
The main advantage of trading using opposite Mena Transport and Mono Next positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, Mono Next 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 Mono Next will offset losses from the drop in Mono Next'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 |
| Mono Next vs. BEC World Public | Mono Next vs. Jasmine International Public | Mono Next vs. IRPC Public | Mono Next vs. Beauty Community 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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