Correlation Between Moong Pattana and Eastern Technical
Can any of the company-specific risk be diversified away by investing in both Moong Pattana and Eastern Technical 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 Eastern Technical 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 Eastern Technical Engineering, you can compare the effects of market volatilities on Moong Pattana and Eastern Technical 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 Eastern Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moong Pattana and Eastern Technical.
Diversification Opportunities for Moong Pattana and Eastern Technical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Moong and Eastern is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Moong Pattana International and Eastern Technical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Technical 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 Eastern Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Technical has no effect on the direction of Moong Pattana i.e., Moong Pattana and Eastern Technical go up and down completely randomly.
Pair Corralation between Moong Pattana and Eastern Technical
Assuming the 90 days trading horizon Moong Pattana International is expected to generate 1.0 times more return on investment than Eastern Technical. However, Moong Pattana International is 1.0 times less risky than Eastern Technical. It trades about 0.08 of its potential returns per unit of risk. Eastern Technical Engineering is currently generating about 0.08 per unit of risk. If you would invest 212.00 in Moong Pattana International on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Moong Pattana International or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moong Pattana International vs. Eastern Technical Engineering
Performance |
| Timeline |
| Moong Pattana Intern |
| Eastern Technical |
Moong Pattana and Eastern Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moong Pattana and Eastern Technical
The main advantage of trading using opposite Moong Pattana and Eastern Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moong Pattana position performs unexpectedly, Eastern Technical 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 Technical will offset losses from the drop in Eastern Technical's long position.| Moong Pattana vs. Metro Systems | Moong Pattana vs. Mega Lifesciences Public | Moong Pattana vs. Hana Microelectronics Public | Moong Pattana vs. Karmarts Public |
| Eastern Technical vs. G Capital Public | Eastern Technical vs. Harn Engineering Solutions | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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