Correlation Between Mono Next and Triple I
Can any of the company-specific risk be diversified away by investing in both Mono Next and Triple I 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 Triple I 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 Triple i Logistics, you can compare the effects of market volatilities on Mono Next and Triple I 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 Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mono Next and Triple I.
Diversification Opportunities for Mono Next and Triple I
Very poor diversification
The 3 months correlation between Mono and Triple is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mono Next Public and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics 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 Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Mono Next i.e., Mono Next and Triple I go up and down completely randomly.
Pair Corralation between Mono Next and Triple I
Assuming the 90 days trading horizon Mono Next Public is expected to generate 1.65 times more return on investment than Triple I. However, Mono Next is 1.65 times more volatile than Triple i Logistics. It trades about 0.08 of its potential returns per unit of risk. Triple i Logistics is currently generating about -0.1 per unit of risk. If you would invest 170.00 in Mono Next Public on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Mono Next Public or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mono Next Public vs. Triple i Logistics
Performance |
| Timeline |
| Mono Next Public |
| Triple i Logistics |
Mono Next and Triple I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mono Next and Triple I
The main advantage of trading using opposite Mono Next and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mono Next position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.| Mono Next vs. Indara Insurance Public | Mono Next vs. Regional Container Lines | Mono Next vs. Regional Container Lines | Mono Next vs. Mahachai Hospital Public |
| Triple I vs. Tata Steel Public | Triple I vs. Thaifoods Group Public | Triple I vs. TMT Steel Public | Triple I vs. The Erawan Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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