Correlation Between Muramoto Electron and Thai Rung
Can any of the company-specific risk be diversified away by investing in both Muramoto Electron and Thai Rung 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 Muramoto Electron and Thai Rung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muramoto Electron Public and Thai Rung Union, you can compare the effects of market volatilities on Muramoto Electron and Thai Rung 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 Muramoto Electron with a short position of Thai Rung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muramoto Electron and Thai Rung.
Diversification Opportunities for Muramoto Electron and Thai Rung
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Muramoto and Thai is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Muramoto Electron Public and Thai Rung Union in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rung Union and Muramoto Electron 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 Muramoto Electron Public are associated (or correlated) with Thai Rung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rung Union has no effect on the direction of Muramoto Electron i.e., Muramoto Electron and Thai Rung go up and down completely randomly.
Pair Corralation between Muramoto Electron and Thai Rung
Assuming the 90 days trading horizon Muramoto Electron Public is expected to under-perform the Thai Rung. In addition to that, Muramoto Electron is 3.76 times more volatile than Thai Rung Union. It trades about -0.21 of its total potential returns per unit of risk. Thai Rung Union is currently generating about -0.05 per unit of volatility. If you would invest 320.00 in Thai Rung Union on September 3, 2024 and sell it today you would lose (2.00) from holding Thai Rung Union or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muramoto Electron Public vs. Thai Rung Union
Performance |
| Timeline |
| Muramoto Electron Public |
| Thai Rung Union |
Muramoto Electron and Thai Rung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muramoto Electron and Thai Rung
The main advantage of trading using opposite Muramoto Electron and Thai Rung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muramoto Electron position performs unexpectedly, Thai Rung 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 Thai Rung will offset losses from the drop in Thai Rung's long position.| Muramoto Electron vs. KCE Electronics Public | Muramoto Electron vs. Land and Houses | Muramoto Electron vs. Delta Electronics Public | Muramoto Electron vs. The Siam Cement |
| Thai Rung vs. Central Pattana Public | Thai Rung vs. CP ALL Public | Thai Rung vs. Bangkok Dusit Medical | Thai Rung vs. Airports of Thailand |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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