Correlation Between Moshi Moshi and SG Capital
Can any of the company-specific risk be diversified away by investing in both Moshi Moshi and SG Capital 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 SG Capital 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 SG Capital PCL, you can compare the effects of market volatilities on Moshi Moshi and SG Capital 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 SG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moshi Moshi and SG Capital.
Diversification Opportunities for Moshi Moshi and SG Capital
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Moshi and SGC is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Moshi Moshi Retail and SG Capital PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Capital PCL 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 SG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Capital PCL has no effect on the direction of Moshi Moshi i.e., Moshi Moshi and SG Capital go up and down completely randomly.
Pair Corralation between Moshi Moshi and SG Capital
Assuming the 90 days trading horizon Moshi Moshi Retail is expected to generate 12.32 times more return on investment than SG Capital. However, Moshi Moshi is 12.32 times more volatile than SG Capital PCL. It trades about 0.05 of its potential returns per unit of risk. SG Capital PCL is currently generating about -0.01 per unit of risk. If you would invest 4,668 in Moshi Moshi Retail on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Moshi Moshi Retail or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Moshi Moshi Retail vs. SG Capital PCL
Performance |
| Timeline |
| Moshi Moshi Retail |
| SG Capital PCL |
Moshi Moshi and SG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moshi Moshi and SG Capital
The main advantage of trading using opposite Moshi Moshi and SG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moshi Moshi position performs unexpectedly, SG Capital 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 SG Capital will offset losses from the drop in SG Capital's long position.| Moshi Moshi vs. PTT Oil and | Moshi Moshi vs. Delta Electronics Public | Moshi Moshi vs. Com7 PCL | Moshi Moshi vs. The Erawan Group |
| SG Capital vs. Jay Mart Public | SG Capital vs. Singer Thailand Public | SG Capital vs. JMT Network Services | SG Capital vs. Muangthai Capital 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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