Correlation Between MST Investment and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both MST Investment and Atesco Industrial 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 Atesco Industrial 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 Atesco Industrial Cartering, you can compare the effects of market volatilities on MST Investment and Atesco Industrial 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 Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Atesco Industrial.
Diversification Opportunities for MST Investment and Atesco Industrial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MST and Atesco is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial 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 Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of MST Investment i.e., MST Investment and Atesco Industrial go up and down completely randomly.
Pair Corralation between MST Investment and Atesco Industrial
Assuming the 90 days trading horizon MST Investment JSC is expected to generate 0.35 times more return on investment than Atesco Industrial. However, MST Investment JSC is 2.85 times less risky than Atesco Industrial. It trades about 0.12 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.14 per unit of risk. If you would invest 670,000 in MST Investment JSC on October 28, 2024 and sell it today you would earn a total of 40,000 from holding MST Investment JSC or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
MST Investment JSC vs. Atesco Industrial Cartering
Performance |
| Timeline |
| MST Investment JSC |
| Atesco Industrial |
MST Investment and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MST Investment and Atesco Industrial
The main advantage of trading using opposite MST Investment and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| MST Investment vs. FIT INVEST JSC | MST Investment vs. Damsan JSC | MST Investment vs. An Phat Plastic | MST Investment vs. APG Securities Joint |
| Atesco Industrial vs. Ba Ria Thermal | Atesco Industrial vs. CEO Group JSC | Atesco Industrial vs. Pha Le Plastics | Atesco Industrial vs. Tay Ninh Rubber |
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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