Correlation Between Mena Transport and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both Mena Transport and Stock Exchange 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 Stock Exchange 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 Stock Exchange Of, you can compare the effects of market volatilities on Mena Transport and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Stock Exchange.
Diversification Opportunities for Mena Transport and Stock Exchange
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mena and Stock is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of Mena Transport i.e., Mena Transport and Stock Exchange go up and down completely randomly.
Pair Corralation between Mena Transport and Stock Exchange
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 3.8 times more return on investment than Stock Exchange. However, Mena Transport is 3.8 times more volatile than Stock Exchange Of. It trades about 0.04 of its potential returns per unit of risk. Stock Exchange Of is currently generating about -0.13 per unit of risk. If you would invest 120.00 in Mena Transport Public on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Mena Transport Public or generate 1.67% 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. Stock Exchange Of
Performance |
| Timeline |
Mena Transport and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Mena Transport Public
Pair trading matchups for Mena Transport
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with Mena Transport and Stock Exchange
The main advantage of trading using opposite Mena Transport and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange'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 |
| Stock Exchange vs. MFC Asset Management | Stock Exchange vs. Mena Transport Public | Stock Exchange vs. Lohakit Metal Public | Stock Exchange vs. Porn Prom Metal |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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