Correlation Between Moshi Moshi and Erawan
Can any of the company-specific risk be diversified away by investing in both Moshi Moshi and Erawan 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 Moshi Moshi and Erawan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moshi Moshi Retail and The Erawan Group, you can compare the effects of market volatilities on Moshi Moshi and Erawan 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 Moshi Moshi with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moshi Moshi and Erawan.
Diversification Opportunities for Moshi Moshi and Erawan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moshi and Erawan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Moshi Moshi Retail and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and Moshi Moshi 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 Moshi Moshi Retail are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Moshi Moshi i.e., Moshi Moshi and Erawan go up and down completely randomly.
Pair Corralation between Moshi Moshi and Erawan
Assuming the 90 days trading horizon Moshi Moshi is expected to generate 2.1 times less return on investment than Erawan. In addition to that, Moshi Moshi is 1.18 times more volatile than The Erawan Group. It trades about 0.07 of its total potential returns per unit of risk. The Erawan Group is currently generating about 0.18 per unit of volatility. If you would invest 382.00 in The Erawan Group on August 27, 2024 and sell it today you would earn a total of 30.00 from holding The Erawan Group or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moshi Moshi Retail vs. The Erawan Group
Performance |
| Timeline |
| Moshi Moshi Retail |
| Erawan Group |
Moshi Moshi and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moshi Moshi and Erawan
The main advantage of trading using opposite Moshi Moshi and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moshi Moshi position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| Moshi Moshi vs. The Erawan Group | Moshi Moshi vs. Airports of Thailand | Moshi Moshi vs. Eastern Technical Engineering | Moshi Moshi vs. Pylon Public |
| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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