Correlation Between MFC Nichada and XSpring Capital
Can any of the company-specific risk be diversified away by investing in both MFC Nichada and XSpring Capital 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 MFC Nichada and XSpring Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFC Nichada Thani Property and XSpring Capital Public, you can compare the effects of market volatilities on MFC Nichada and XSpring Capital 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 MFC Nichada with a short position of XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Nichada and XSpring Capital.
Diversification Opportunities for MFC Nichada and XSpring Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MFC and XSpring is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MFC Nichada Thani Property and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital Public and MFC Nichada 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 MFC Nichada Thani Property are associated (or correlated) with XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of MFC Nichada i.e., MFC Nichada and XSpring Capital go up and down completely randomly.
Pair Corralation between MFC Nichada and XSpring Capital
Assuming the 90 days trading horizon MFC Nichada Thani Property is expected to generate 74.82 times more return on investment than XSpring Capital. However, MFC Nichada is 74.82 times more volatile than XSpring Capital Public. It trades about 0.28 of its potential returns per unit of risk. XSpring Capital Public is currently generating about -0.01 per unit of risk. If you would invest 492.00 in MFC Nichada Thani Property on September 3, 2024 and sell it today you would earn a total of 53.00 from holding MFC Nichada Thani Property or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.5% |
| Values | Daily Returns |
MFC Nichada Thani Property vs. XSpring Capital Public
Performance |
| Timeline |
| MFC Nichada Thani |
| XSpring Capital Public |
MFC Nichada and XSpring Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFC Nichada and XSpring Capital
The main advantage of trading using opposite MFC Nichada and XSpring Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFC Nichada position performs unexpectedly, XSpring Capital 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 XSpring Capital will offset losses from the drop in XSpring Capital's long position.| MFC Nichada vs. MFC Strategic Storage | MFC Nichada vs. MFC Nichada Thani Property | MFC Nichada vs. HEMARAJ INDUSTRIAL PROPERTY | MFC Nichada vs. Land and Houses |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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