Correlation Between MST Investment and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both MST Investment and Mekong Fisheries 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 MST Investment and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MST Investment JSC and Mekong Fisheries JSC, you can compare the effects of market volatilities on MST Investment and Mekong Fisheries 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 MST Investment with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Mekong Fisheries.
Diversification Opportunities for MST Investment and Mekong Fisheries
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MST and Mekong is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and MST Investment 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 MST Investment JSC are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of MST Investment i.e., MST Investment and Mekong Fisheries go up and down completely randomly.
Pair Corralation between MST Investment and Mekong Fisheries
Assuming the 90 days trading horizon MST Investment JSC is expected to generate 0.86 times more return on investment than Mekong Fisheries. However, MST Investment JSC is 1.16 times less risky than Mekong Fisheries. It trades about 0.08 of its potential returns per unit of risk. Mekong Fisheries JSC is currently generating about -0.07 per unit of risk. If you would invest 550,000 in MST Investment JSC on August 31, 2024 and sell it today you would earn a total of 40,000 from holding MST Investment JSC or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MST Investment JSC vs. Mekong Fisheries JSC
Performance |
| Timeline |
| MST Investment JSC |
| Mekong Fisheries JSC |
MST Investment and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MST Investment and Mekong Fisheries
The main advantage of trading using opposite MST Investment and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| MST Investment vs. Vu Dang Investment | MST Investment vs. 577 Investment Corp | MST Investment vs. Tienlen Steel Corp | MST Investment vs. Hanoi Beer Alcohol |
| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. Alphanam ME |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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