Correlation Between Muangthai Capital and Forth Public
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and Forth Public 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 Muangthai Capital and Forth Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muangthai Capital Public and Forth Public, you can compare the effects of market volatilities on Muangthai Capital and Forth Public 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 Muangthai Capital with a short position of Forth Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and Forth Public.
Diversification Opportunities for Muangthai Capital and Forth Public
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Muangthai and Forth is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and Forth Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth Public and Muangthai Capital 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 Muangthai Capital Public are associated (or correlated) with Forth Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Public has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and Forth Public go up and down completely randomly.
Pair Corralation between Muangthai Capital and Forth Public
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 0.62 times more return on investment than Forth Public. However, Muangthai Capital Public is 1.61 times less risky than Forth Public. It trades about -0.01 of its potential returns per unit of risk. Forth Public is currently generating about -0.12 per unit of risk. If you would invest 4,975 in Muangthai Capital Public on September 3, 2024 and sell it today you would lose (50.00) from holding Muangthai Capital Public or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muangthai Capital Public vs. Forth Public
Performance |
| Timeline |
| Muangthai Capital Public |
| Forth Public |
Muangthai Capital and Forth Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and Forth Public
The main advantage of trading using opposite Muangthai Capital and Forth Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, Forth Public 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 Forth Public will offset losses from the drop in Forth Public's long position.| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Gulf Energy Development | Muangthai Capital vs. Krungthai Card PCL | Muangthai Capital vs. Carabao Group Public |
| Forth Public vs. Heng Leasing Capital | Forth Public vs. Hydrogen Freehold Leasehold | Forth Public vs. WHA Industrial Leasehold | Forth Public vs. Thai Coating Industrial |
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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