Correlation Between Mono Next and E For
Can any of the company-specific risk be diversified away by investing in both Mono Next and E For 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 Mono Next and E For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mono Next Public and E for L, you can compare the effects of market volatilities on Mono Next and E For 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 Mono Next with a short position of E For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mono Next and E For.
Diversification Opportunities for Mono Next and E For
Modest diversification
The 3 months correlation between Mono and EFORL is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mono Next Public and E for L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E for L and Mono Next 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 Mono Next Public are associated (or correlated) with E For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E for L has no effect on the direction of Mono Next i.e., Mono Next and E For go up and down completely randomly.
Pair Corralation between Mono Next and E For
Assuming the 90 days trading horizon Mono Next is expected to generate 1.82 times less return on investment than E For. But when comparing it to its historical volatility, Mono Next Public is 1.48 times less risky than E For. It trades about 0.33 of its potential returns per unit of risk. E for L is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 13.00 in E for L on August 31, 2024 and sell it today you would earn a total of 14.00 from holding E for L or generate 107.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mono Next Public vs. E for L
Performance |
| Timeline |
| Mono Next Public |
| E for L |
Mono Next and E For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mono Next and E For
The main advantage of trading using opposite Mono Next and E For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mono Next position performs unexpectedly, E For 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 E For will offset losses from the drop in E For's long position.| Mono Next vs. Bangkok Chain Hospital | Mono Next vs. Grande Asset Hotels | Mono Next vs. Better World Green | Mono Next vs. Chularat Hospital Public |
| E For vs. Dohome Public | E For vs. Humanica Public | E For vs. Jay Mart Public | E For vs. Siam Global House |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |