Correlation Between Mitsib Leasing and SC Asset
Can any of the company-specific risk be diversified away by investing in both Mitsib Leasing and SC Asset 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 Mitsib Leasing and SC Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsib Leasing Public and SC Asset, you can compare the effects of market volatilities on Mitsib Leasing and SC Asset 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 Mitsib Leasing with a short position of SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsib Leasing and SC Asset.
Diversification Opportunities for Mitsib Leasing and SC Asset
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mitsib and SC Asset is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mitsib Leasing Public and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and Mitsib 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 Mitsib Leasing Public are associated (or correlated) with SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Mitsib Leasing i.e., Mitsib Leasing and SC Asset go up and down completely randomly.
Pair Corralation between Mitsib Leasing and SC Asset
Assuming the 90 days trading horizon Mitsib Leasing is expected to generate 1.0 times less return on investment than SC Asset. But when comparing it to its historical volatility, Mitsib Leasing Public is 1.0 times less risky than SC Asset. It trades about 0.04 of its potential returns per unit of risk. SC Asset is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 362.00 in SC Asset on September 12, 2024 and sell it today you would lose (70.00) from holding SC Asset or give up 19.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsib Leasing Public vs. SC Asset
Performance |
| Timeline |
| Mitsib Leasing Public |
| SC Asset |
Mitsib Leasing and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsib Leasing and SC Asset
The main advantage of trading using opposite Mitsib Leasing and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsib Leasing position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.| Mitsib Leasing vs. Multibax Public | Mitsib Leasing vs. The Erawan Group | Mitsib Leasing vs. Jay Mart Public | Mitsib Leasing vs. Airports of Thailand |
| SC Asset vs. Phatra Leasing Public | SC Asset vs. Mitsib Leasing Public | SC Asset vs. AJ Advance Technology | SC Asset vs. Global Green Chemicals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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