Correlation Between Muangthai Capital and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and Micro Leasing 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 Micro Leasing 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 Micro Leasing Public, you can compare the effects of market volatilities on Muangthai Capital and Micro Leasing 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 Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and Micro Leasing.
Diversification Opportunities for Muangthai Capital and Micro Leasing
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Muangthai and Micro is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing 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 Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and Micro Leasing go up and down completely randomly.
Pair Corralation between Muangthai Capital and Micro Leasing
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 13.83 times more return on investment than Micro Leasing. However, Muangthai Capital is 13.83 times more volatile than Micro Leasing Public. It trades about 0.04 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.07 per unit of risk. If you would invest 3,776 in Muangthai Capital Public on September 4, 2024 and sell it today you would earn a total of 1,199 from holding Muangthai Capital Public or generate 31.75% 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. Micro Leasing Public
Performance |
| Timeline |
| Muangthai Capital Public |
| Micro Leasing Public |
Muangthai Capital and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and Micro Leasing
The main advantage of trading using opposite Muangthai Capital and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Muangthai Capital vs. Multibax Public | Muangthai Capital vs. Forth Smart Service | Muangthai Capital vs. LPN Development Public | Muangthai Capital vs. Jasmine International Public |
| Micro Leasing vs. Multibax Public | Micro Leasing vs. Forth Smart Service | Micro Leasing vs. LPN Development Public | Micro Leasing vs. Jasmine International Public |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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