Correlation Between Minor International and Chiangmai Frozen
Can any of the company-specific risk be diversified away by investing in both Minor International and Chiangmai Frozen 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 Minor International and Chiangmai Frozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International Public and Chiangmai Frozen Foods, you can compare the effects of market volatilities on Minor International and Chiangmai Frozen 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 Minor International with a short position of Chiangmai Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Chiangmai Frozen.
Diversification Opportunities for Minor International and Chiangmai Frozen
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Minor and Chiangmai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Minor International Public and Chiangmai Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiangmai Frozen Foods and Minor International 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 Minor International Public are associated (or correlated) with Chiangmai Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiangmai Frozen Foods has no effect on the direction of Minor International i.e., Minor International and Chiangmai Frozen go up and down completely randomly.
Pair Corralation between Minor International and Chiangmai Frozen
Assuming the 90 days trading horizon Minor International Public is expected to under-perform the Chiangmai Frozen. But the stock apears to be less risky and, when comparing its historical volatility, Minor International Public is 32.24 times less risky than Chiangmai Frozen. The stock trades about -0.02 of its potential returns per unit of risk. The Chiangmai Frozen Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Chiangmai Frozen Foods on August 26, 2024 and sell it today you would lose (6.00) from holding Chiangmai Frozen Foods or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minor International Public vs. Chiangmai Frozen Foods
Performance |
| Timeline |
| Minor International |
| Chiangmai Frozen Foods |
Minor International and Chiangmai Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Chiangmai Frozen
The main advantage of trading using opposite Minor International and Chiangmai Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, Chiangmai Frozen 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 Chiangmai Frozen will offset losses from the drop in Chiangmai Frozen's long position.| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International vs. Kasikornbank Public |
| Chiangmai Frozen vs. CP ALL Public | Chiangmai Frozen vs. Thai Union Group | Chiangmai Frozen vs. Minor International Public | Chiangmai Frozen vs. Central Pattana 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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