Correlation Between Mena Transport and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both Mena Transport and Silicon Craft 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 Silicon Craft 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 Silicon Craft Technology, you can compare the effects of market volatilities on Mena Transport and Silicon Craft 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 Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Silicon Craft.
Diversification Opportunities for Mena Transport and Silicon Craft
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mena and Silicon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology 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 Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of Mena Transport i.e., Mena Transport and Silicon Craft go up and down completely randomly.
Pair Corralation between Mena Transport and Silicon Craft
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 0.57 times more return on investment than Silicon Craft. However, Mena Transport Public is 1.74 times less risky than Silicon Craft. It trades about 0.06 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.29 per unit of risk. If you would invest 120.00 in Mena Transport Public on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Mena Transport Public or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. Silicon Craft Technology
Performance |
| Timeline |
| Mena Transport Public |
| Silicon Craft Technology |
Mena Transport and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Silicon Craft
The main advantage of trading using opposite Mena Transport and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft'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 |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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