Correlation Between Premier Marketing and MK Restaurant
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and MK Restaurant 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 Premier Marketing and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and MK Restaurant Group, you can compare the effects of market volatilities on Premier Marketing and MK Restaurant 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 Premier Marketing with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and MK Restaurant.
Diversification Opportunities for Premier Marketing and MK Restaurant
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Premier and MK Restaurant is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and MK Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MK Restaurant Group and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with MK Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MK Restaurant Group has no effect on the direction of Premier Marketing i.e., Premier Marketing and MK Restaurant go up and down completely randomly.
Pair Corralation between Premier Marketing and MK Restaurant
Assuming the 90 days horizon Premier Marketing Public is expected to generate 0.84 times more return on investment than MK Restaurant. However, Premier Marketing Public is 1.19 times less risky than MK Restaurant. It trades about 0.02 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.1 per unit of risk. If you would invest 823.00 in Premier Marketing Public on September 3, 2024 and sell it today you would earn a total of 87.00 from holding Premier Marketing Public or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Marketing Public vs. MK Restaurant Group
Performance |
| Timeline |
| Premier Marketing Public |
| MK Restaurant Group |
Premier Marketing and MK Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and MK Restaurant
The main advantage of trading using opposite Premier Marketing and MK Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, MK Restaurant 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 MK Restaurant will offset losses from the drop in MK Restaurant's long position.| Premier Marketing vs. Airports of Thailand | Premier Marketing vs. PTT Public | Premier Marketing vs. Bangkok Dusit Medical | Premier Marketing vs. Kasikornbank Public |
| MK Restaurant vs. Minor International Public | MK Restaurant vs. Home Product Center | MK Restaurant vs. CP ALL Public | MK Restaurant vs. Central Pattana 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |