Correlation Between MK Real and Nawarat Patanakarn
Can any of the company-specific risk be diversified away by investing in both MK Real and Nawarat Patanakarn 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 MK Real and Nawarat Patanakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MK Real Estate and Nawarat Patanakarn Public, you can compare the effects of market volatilities on MK Real and Nawarat Patanakarn 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 MK Real with a short position of Nawarat Patanakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of MK Real and Nawarat Patanakarn.
Diversification Opportunities for MK Real and Nawarat Patanakarn
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MK Real and Nawarat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding MK Real Estate and Nawarat Patanakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawarat Patanakarn Public and MK Real 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 MK Real Estate are associated (or correlated) with Nawarat Patanakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawarat Patanakarn Public has no effect on the direction of MK Real i.e., MK Real and Nawarat Patanakarn go up and down completely randomly.
Pair Corralation between MK Real and Nawarat Patanakarn
Assuming the 90 days horizon MK Real Estate is expected to under-perform the Nawarat Patanakarn. But the stock apears to be less risky and, when comparing its historical volatility, MK Real Estate is 22.39 times less risky than Nawarat Patanakarn. The stock trades about -0.04 of its potential returns per unit of risk. The Nawarat Patanakarn Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Nawarat Patanakarn Public on November 3, 2024 and sell it today you would lose (21.00) from holding Nawarat Patanakarn Public or give up 61.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MK Real Estate vs. Nawarat Patanakarn Public
Performance |
| Timeline |
| MK Real Estate |
| Nawarat Patanakarn Public |
MK Real and Nawarat Patanakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MK Real and Nawarat Patanakarn
The main advantage of trading using opposite MK Real and Nawarat Patanakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MK Real position performs unexpectedly, Nawarat Patanakarn 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 Nawarat Patanakarn will offset losses from the drop in Nawarat Patanakarn's long position.| MK Real vs. LPN Development Public | MK Real vs. Land and Houses | MK Real vs. Property Perfect Public | MK Real vs. Italian Thai Development Public |
| Nawarat Patanakarn vs. Italian Thai Development Public | Nawarat Patanakarn vs. Power Line Engineering | Nawarat Patanakarn vs. Property Perfect Public | Nawarat Patanakarn vs. MK Real Estate |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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