Correlation Between Moong Pattana and Thai Rubber
Can any of the company-specific risk be diversified away by investing in both Moong Pattana and Thai Rubber 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 Thai Rubber 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 Thai Rubber Latex, you can compare the effects of market volatilities on Moong Pattana and Thai Rubber 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 Thai Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moong Pattana and Thai Rubber.
Diversification Opportunities for Moong Pattana and Thai Rubber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Moong and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moong Pattana International and Thai Rubber Latex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rubber Latex 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 Thai Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rubber Latex has no effect on the direction of Moong Pattana i.e., Moong Pattana and Thai Rubber go up and down completely randomly.
Pair Corralation between Moong Pattana and Thai Rubber
Assuming the 90 days trading horizon Moong Pattana International is expected to generate 15.94 times more return on investment than Thai Rubber. However, Moong Pattana is 15.94 times more volatile than Thai Rubber Latex. It trades about 0.04 of its potential returns per unit of risk. Thai Rubber Latex is currently generating about -0.03 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moong Pattana International vs. Thai Rubber Latex
Performance |
| Timeline |
| Moong Pattana Intern |
| Thai Rubber Latex |
Moong Pattana and Thai Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moong Pattana and Thai Rubber
The main advantage of trading using opposite Moong Pattana and Thai Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moong Pattana position performs unexpectedly, Thai Rubber 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 Thai Rubber will offset losses from the drop in Thai Rubber'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 |
| Thai Rubber vs. Thoresen Thai Agencies | Thai Rubber vs. Sri Trang Agro Industry | Thai Rubber vs. TPI Polene Public | Thai Rubber vs. Ratchthani Leasing 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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