Correlation Between MST Investment and Transport
Can any of the company-specific risk be diversified away by investing in both MST Investment and Transport 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 Transport 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 Transport and Industry, you can compare the effects of market volatilities on MST Investment and Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Transport.
Diversification Opportunities for MST Investment and Transport
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MST and Transport is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Industry 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of MST Investment i.e., MST Investment and Transport go up and down completely randomly.
Pair Corralation between MST Investment and Transport
Assuming the 90 days trading horizon MST Investment JSC is expected to generate 1.55 times more return on investment than Transport. However, MST Investment is 1.55 times more volatile than Transport and Industry. It trades about 0.1 of its potential returns per unit of risk. Transport and Industry is currently generating about -0.21 per unit of risk. If you would invest 560,000 in MST Investment JSC on September 2, 2024 and sell it today you would earn a total of 30,000 from holding MST Investment JSC or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MST Investment JSC vs. Transport and Industry
Performance |
| Timeline |
| MST Investment JSC |
| Transport and Industry |
MST Investment and Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MST Investment and Transport
The main advantage of trading using opposite MST Investment and Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Transport 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 Transport will offset losses from the drop in Transport's long position.| MST Investment vs. FIT INVEST JSC | MST Investment vs. Damsan JSC | MST Investment vs. An Phat Plastic | MST Investment vs. Alphanam ME |
| Transport vs. Tienlen Steel Corp | Transport vs. PVI Reinsurance Corp | Transport vs. Vietnam National Reinsurance | Transport vs. CEO Group JSC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |