Correlation Between Muangthai Capital and Lease IT
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and Lease IT 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 Lease IT 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 Lease IT Public, you can compare the effects of market volatilities on Muangthai Capital and Lease IT 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 Lease IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and Lease IT.
Diversification Opportunities for Muangthai Capital and Lease IT
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Muangthai and Lease is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and Lease IT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lease IT 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 Lease IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lease IT Public has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and Lease IT go up and down completely randomly.
Pair Corralation between Muangthai Capital and Lease IT
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 1.0 times more return on investment than Lease IT. However, Muangthai Capital Public is 1.0 times less risky than Lease IT. It trades about 0.06 of its potential returns per unit of risk. Lease IT Public is currently generating about 0.05 per unit of risk. If you would invest 4,404 in Muangthai Capital Public on September 14, 2024 and sell it today you would earn a total of 571.00 from holding Muangthai Capital Public or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muangthai Capital Public vs. Lease IT Public
Performance |
| Timeline |
| Muangthai Capital Public |
| Lease IT Public |
Muangthai Capital and Lease IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and Lease IT
The main advantage of trading using opposite Muangthai Capital and Lease IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, Lease IT 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 Lease IT will offset losses from the drop in Lease IT's long position.| Muangthai Capital vs. Srisawad Power 1979 | Muangthai Capital vs. Micro Leasing Public | Muangthai Capital vs. Krungthai Card PCL |
| Lease IT vs. Srisawad Power 1979 | Lease IT vs. Muangthai Capital Public | Lease IT vs. Micro Leasing Public | Lease IT vs. Krungthai Card PCL |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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