Correlation Between Mono Next and Eastern Polymer
Can any of the company-specific risk be diversified away by investing in both Mono Next and Eastern Polymer 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 Eastern Polymer 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 Eastern Polymer Group, you can compare the effects of market volatilities on Mono Next and Eastern Polymer 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 Eastern Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mono Next and Eastern Polymer.
Diversification Opportunities for Mono Next and Eastern Polymer
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mono and Eastern is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mono Next Public and Eastern Polymer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Polymer Group 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 Eastern Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Polymer Group has no effect on the direction of Mono Next i.e., Mono Next and Eastern Polymer go up and down completely randomly.
Pair Corralation between Mono Next and Eastern Polymer
Assuming the 90 days trading horizon Mono Next Public is expected to under-perform the Eastern Polymer. In addition to that, Mono Next is 2.98 times more volatile than Eastern Polymer Group. It trades about -0.18 of its total potential returns per unit of risk. Eastern Polymer Group is currently generating about -0.14 per unit of volatility. If you would invest 374.00 in Eastern Polymer Group on October 21, 2024 and sell it today you would lose (22.00) from holding Eastern Polymer Group or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mono Next Public vs. Eastern Polymer Group
Performance |
| Timeline |
| Mono Next Public |
| Eastern Polymer Group |
Mono Next and Eastern Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mono Next and Eastern Polymer
The main advantage of trading using opposite Mono Next and Eastern Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mono Next position performs unexpectedly, Eastern Polymer 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 Eastern Polymer will offset losses from the drop in Eastern Polymer's long position.| Mono Next vs. Siamgas and Petrochemicals | Mono Next vs. Namyong Terminal PCL | Mono Next vs. MCOT Public | Mono Next vs. The Erawan Group |
| Eastern Polymer vs. AP Public | Eastern Polymer vs. CK Power Public | Eastern Polymer vs. Gunkul Engineering Public | Eastern Polymer vs. Indorama Ventures PCL |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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