Correlation Between Moong Pattana and ARIP Public
Can any of the company-specific risk be diversified away by investing in both Moong Pattana and ARIP Public 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 Moong Pattana and ARIP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moong Pattana International and ARIP Public, you can compare the effects of market volatilities on Moong Pattana and ARIP Public 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 Moong Pattana with a short position of ARIP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moong Pattana and ARIP Public.
Diversification Opportunities for Moong Pattana and ARIP Public
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moong and ARIP is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Moong Pattana International and ARIP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARIP Public and Moong Pattana 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 Moong Pattana International are associated (or correlated) with ARIP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARIP Public has no effect on the direction of Moong Pattana i.e., Moong Pattana and ARIP Public go up and down completely randomly.
Pair Corralation between Moong Pattana and ARIP Public
Assuming the 90 days trading horizon Moong Pattana International is expected to generate 1.0 times more return on investment than ARIP Public. However, Moong Pattana International is 1.0 times less risky than ARIP Public. It trades about 0.04 of its potential returns per unit of risk. ARIP Public is currently generating about 0.04 per unit of risk. If you would invest 210.00 in Moong Pattana International on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Moong Pattana International or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moong Pattana International vs. ARIP Public
Performance |
| Timeline |
| Moong Pattana Intern |
| ARIP Public |
Moong Pattana and ARIP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moong Pattana and ARIP Public
The main advantage of trading using opposite Moong Pattana and ARIP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moong Pattana position performs unexpectedly, ARIP Public 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 ARIP Public will offset losses from the drop in ARIP Public's long position.| Moong Pattana vs. Mega Lifesciences Public | Moong Pattana vs. Hana Microelectronics Public | Moong Pattana vs. Karmarts Public | Moong Pattana vs. Jasmine International Public |
| ARIP Public vs. Moong Pattana International | ARIP Public vs. Premier Technology Public | ARIP Public vs. Sea Oil Public | ARIP Public vs. Thai Mitsuwa Public |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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