Correlation Between Saksiam Leasing and MFC Industrial
Can any of the company-specific risk be diversified away by investing in both Saksiam Leasing and MFC Industrial 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 Saksiam Leasing and MFC Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saksiam Leasing Public and MFC Industrial Investment, you can compare the effects of market volatilities on Saksiam Leasing and MFC Industrial 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 Saksiam Leasing with a short position of MFC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksiam Leasing and MFC Industrial.
Diversification Opportunities for Saksiam Leasing and MFC Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saksiam and MFC is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public and MFC Industrial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Industrial Investment and Saksiam Leasing 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 Saksiam Leasing Public are associated (or correlated) with MFC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Industrial Investment has no effect on the direction of Saksiam Leasing i.e., Saksiam Leasing and MFC Industrial go up and down completely randomly.
Pair Corralation between Saksiam Leasing and MFC Industrial
Assuming the 90 days trading horizon Saksiam Leasing is expected to generate 1.06 times less return on investment than MFC Industrial. In addition to that, Saksiam Leasing is 3.49 times more volatile than MFC Industrial Investment. It trades about 0.1 of its total potential returns per unit of risk. MFC Industrial Investment is currently generating about 0.38 per unit of volatility. If you would invest 619.00 in MFC Industrial Investment on August 25, 2024 and sell it today you would earn a total of 51.00 from holding MFC Industrial Investment or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Saksiam Leasing Public vs. MFC Industrial Investment
Performance |
| Timeline |
| Saksiam Leasing Public |
| MFC Industrial Investment |
Saksiam Leasing and MFC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saksiam Leasing and MFC Industrial
The main advantage of trading using opposite Saksiam Leasing and MFC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing position performs unexpectedly, MFC Industrial 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 MFC Industrial will offset losses from the drop in MFC Industrial's long position.| Saksiam Leasing vs. Amanah Leasing Public | Saksiam Leasing vs. Infraset Public | Saksiam Leasing vs. JMT Network Services |
| MFC Industrial vs. Delta Electronics Public | MFC Industrial vs. Delta Electronics Public | MFC Industrial vs. Airports of Thailand | MFC Industrial vs. Airports of Thailand |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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