Correlation Between MFEC PCL and Sky ICT
Can any of the company-specific risk be diversified away by investing in both MFEC PCL and Sky ICT 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 MFEC PCL and Sky ICT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFEC PCL and Sky ICT Public, you can compare the effects of market volatilities on MFEC PCL and Sky ICT 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 MFEC PCL with a short position of Sky ICT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFEC PCL and Sky ICT.
Diversification Opportunities for MFEC PCL and Sky ICT
Significant diversification
The 3 months correlation between MFEC and Sky is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MFEC PCL and Sky ICT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky ICT Public and MFEC PCL 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 MFEC PCL are associated (or correlated) with Sky ICT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky ICT Public has no effect on the direction of MFEC PCL i.e., MFEC PCL and Sky ICT go up and down completely randomly.
Pair Corralation between MFEC PCL and Sky ICT
Assuming the 90 days trading horizon MFEC PCL is expected to generate 1.0 times more return on investment than Sky ICT. However, MFEC PCL is 1.0 times less risky than Sky ICT. It trades about 0.08 of its potential returns per unit of risk. Sky ICT Public is currently generating about 0.08 per unit of risk. If you would invest 585.00 in MFEC PCL on September 12, 2024 and sell it today you would earn a total of 30.00 from holding MFEC PCL or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFEC PCL vs. Sky ICT Public
Performance |
| Timeline |
| MFEC PCL |
| Sky ICT Public |
MFEC PCL and Sky ICT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFEC PCL and Sky ICT
The main advantage of trading using opposite MFEC PCL and Sky ICT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFEC PCL position performs unexpectedly, Sky ICT 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 Sky ICT will offset losses from the drop in Sky ICT's long position.| MFEC PCL vs. Internet Thailand Public | MFEC PCL vs. Advanced Information Technology | MFEC PCL vs. Metro Systems | MFEC PCL vs. Jasmine International Public |
| Sky ICT vs. Forth Public | Sky ICT vs. Delta Electronics Public | Sky ICT vs. MFEC PCL | Sky ICT vs. Hana Microelectronics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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