Correlation Between Muangthai Capital and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology Public, you can compare the effects of market volatilities on Muangthai Capital and Sabuy Technology 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 Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and Sabuy Technology.
Diversification Opportunities for Muangthai Capital and Sabuy Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muangthai and Sabuy is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy Technology 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 Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and Sabuy Technology go up and down completely randomly.
Pair Corralation between Muangthai Capital and Sabuy Technology
Assuming the 90 days trading horizon Muangthai Capital Public is expected to generate 0.99 times more return on investment than Sabuy Technology. However, Muangthai Capital Public is 1.01 times less risky than Sabuy Technology. It trades about 0.04 of its potential returns per unit of risk. Sabuy Technology Public is currently generating about 0.03 per unit of risk. If you would invest 3,534 in Muangthai Capital Public on January 22, 2025 and sell it today you would earn a total of 791.00 from holding Muangthai Capital Public or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muangthai Capital Public vs. Sabuy Technology Public
Performance |
| Timeline |
| Muangthai Capital Public |
| Sabuy Technology Public |
Muangthai Capital and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muangthai Capital and Sabuy Technology
The main advantage of trading using opposite Muangthai Capital and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, Sabuy Technology 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 Sabuy Technology will offset losses from the drop in Sabuy Technology'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 |
| Sabuy Technology vs. Hydrotek Public | Sabuy Technology vs. BuilderSmart Public | Sabuy Technology vs. Salee Colour Public | Sabuy Technology vs. Home Pottery 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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