Correlation Between Mida Assets and Thai Steel
Can any of the company-specific risk be diversified away by investing in both Mida Assets and Thai Steel 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 Mida Assets and Thai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mida Assets Public and Thai Steel Cable, you can compare the effects of market volatilities on Mida Assets and Thai Steel 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 Mida Assets with a short position of Thai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mida Assets and Thai Steel.
Diversification Opportunities for Mida Assets and Thai Steel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mida and Thai is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mida Assets Public and Thai Steel Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Steel Cable and Mida Assets 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 Mida Assets Public are associated (or correlated) with Thai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Steel Cable has no effect on the direction of Mida Assets i.e., Mida Assets and Thai Steel go up and down completely randomly.
Pair Corralation between Mida Assets and Thai Steel
Assuming the 90 days trading horizon Mida Assets Public is expected to generate 1.0 times more return on investment than Thai Steel. However, Mida Assets is 1.0 times more volatile than Thai Steel Cable. It trades about 0.08 of its potential returns per unit of risk. Thai Steel Cable is currently generating about 0.08 per unit of risk. If you would invest 40.00 in Mida Assets Public on September 5, 2024 and sell it today you would lose (4.00) from holding Mida Assets Public or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Mida Assets Public vs. Thai Steel Cable
Performance |
| Timeline |
| Mida Assets Public |
| Thai Steel Cable |
Mida Assets and Thai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mida Assets and Thai Steel
The main advantage of trading using opposite Mida Assets and Thai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mida Assets position performs unexpectedly, Thai Steel 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 Steel will offset losses from the drop in Thai Steel's long position.| Mida Assets vs. Thai Steel Cable | Mida Assets vs. Tropical Canning Public | Mida Assets vs. RB Food Supply | Mida Assets vs. Eureka Design Public |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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