Correlation Between Micro Leasing and Muangthai Capital
Can any of the company-specific risk be diversified away by investing in both Micro Leasing and Muangthai Capital 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 Micro Leasing and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micro Leasing Public and Muangthai Capital Public, you can compare the effects of market volatilities on Micro Leasing and Muangthai Capital 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 Micro Leasing with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Leasing and Muangthai Capital.
Diversification Opportunities for Micro Leasing and Muangthai Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micro and Muangthai is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing Public and Muangthai Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muangthai Capital Public and Micro Leasing 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 Micro Leasing Public are associated (or correlated) with Muangthai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muangthai Capital Public has no effect on the direction of Micro Leasing i.e., Micro Leasing and Muangthai Capital go up and down completely randomly.
Pair Corralation between Micro Leasing and Muangthai Capital
Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the Muangthai Capital. But the stock apears to be less risky and, when comparing its historical volatility, Micro Leasing Public is 18.97 times less risky than Muangthai Capital. The stock trades about -0.06 of its potential returns per unit of risk. The Muangthai Capital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,275 in Muangthai Capital Public on September 12, 2024 and sell it today you would earn a total of 675.00 from holding Muangthai Capital Public or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micro Leasing Public vs. Muangthai Capital Public
Performance |
| Timeline |
| Micro Leasing Public |
| Muangthai Capital Public |
Micro Leasing and Muangthai Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Leasing and Muangthai Capital
The main advantage of trading using opposite Micro Leasing and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Leasing position performs unexpectedly, Muangthai Capital 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 Muangthai Capital will offset losses from the drop in Muangthai Capital's long position.| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Muangthai Capital Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Micro Leasing Public | Muangthai Capital vs. Krungthai Card PCL |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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