Correlation Between Major Cineplex and Amata Summit
Can any of the company-specific risk be diversified away by investing in both Major Cineplex and Amata Summit 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 Major Cineplex and Amata Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Major Cineplex Lifestyle and Amata Summit Growth, you can compare the effects of market volatilities on Major Cineplex and Amata Summit 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 Major Cineplex with a short position of Amata Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and Amata Summit.
Diversification Opportunities for Major Cineplex and Amata Summit
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Major and Amata is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Lifestyle and Amata Summit Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Summit Growth and Major Cineplex 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 Major Cineplex Lifestyle are associated (or correlated) with Amata Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Summit Growth has no effect on the direction of Major Cineplex i.e., Major Cineplex and Amata Summit go up and down completely randomly.
Pair Corralation between Major Cineplex and Amata Summit
Assuming the 90 days trading horizon Major Cineplex Lifestyle is expected to generate 0.77 times more return on investment than Amata Summit. However, Major Cineplex Lifestyle is 1.3 times less risky than Amata Summit. It trades about 0.0 of its potential returns per unit of risk. Amata Summit Growth is currently generating about -0.17 per unit of risk. If you would invest 418.00 in Major Cineplex Lifestyle on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Major Cineplex Lifestyle or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Major Cineplex Lifestyle vs. Amata Summit Growth
Performance |
| Timeline |
| Major Cineplex Lifestyle |
| Amata Summit Growth |
Major Cineplex and Amata Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and Amata Summit
The main advantage of trading using opposite Major Cineplex and Amata Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex position performs unexpectedly, Amata Summit 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 Amata Summit will offset losses from the drop in Amata Summit's long position.| Major Cineplex vs. LH Shopping Centers | Major Cineplex vs. Land and Houses | Major Cineplex vs. Quality Houses Property | Major Cineplex vs. Impact Growth REIT |
| Amata Summit vs. WHA Premium Growth | Amata Summit vs. AIM Industrial Growth | Amata Summit vs. Bangkok Commercial Property | Amata Summit vs. Quality Houses Property |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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