Correlation Between Moong Pattana and ONE Enterprise
Can any of the company-specific risk be diversified away by investing in both Moong Pattana and ONE Enterprise 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 ONE Enterprise 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 The ONE Enterprise, you can compare the effects of market volatilities on Moong Pattana and ONE Enterprise 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 ONE Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moong Pattana and ONE Enterprise.
Diversification Opportunities for Moong Pattana and ONE Enterprise
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Moong and ONE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Moong Pattana International and The ONE Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE Enterprise 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 ONE Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE Enterprise has no effect on the direction of Moong Pattana i.e., Moong Pattana and ONE Enterprise go up and down completely randomly.
Pair Corralation between Moong Pattana and ONE Enterprise
Assuming the 90 days trading horizon Moong Pattana International is expected to generate 28.71 times more return on investment than ONE Enterprise. However, Moong Pattana is 28.71 times more volatile than The ONE Enterprise. It trades about 0.07 of its potential returns per unit of risk. The ONE Enterprise is currently generating about -0.03 per unit of risk. If you would invest 207.00 in Moong Pattana International on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Moong Pattana International or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moong Pattana International vs. The ONE Enterprise
Performance |
| Timeline |
| Moong Pattana Intern |
| ONE Enterprise |
Moong Pattana and ONE Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moong Pattana and ONE Enterprise
The main advantage of trading using opposite Moong Pattana and ONE Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moong Pattana position performs unexpectedly, ONE Enterprise 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 ONE Enterprise will offset losses from the drop in ONE Enterprise'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 |
| ONE Enterprise vs. Plan B Media | ONE Enterprise vs. Origin Property PCL | ONE Enterprise vs. Gulf Energy Development | ONE Enterprise vs. PTT Oil and |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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