Correlation Between Samart Public and MC Group
Can any of the company-specific risk be diversified away by investing in both Samart Public and MC Group 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 Samart Public and MC Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samart Public and MC Group Public, you can compare the effects of market volatilities on Samart Public and MC Group 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 Samart Public with a short position of MC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samart Public and MC Group.
Diversification Opportunities for Samart Public and MC Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samart and MC Group is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Samart Public and MC Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Group Public and Samart Public 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 Samart Public are associated (or correlated) with MC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Group Public has no effect on the direction of Samart Public i.e., Samart Public and MC Group go up and down completely randomly.
Pair Corralation between Samart Public and MC Group
Assuming the 90 days trading horizon Samart Public is expected to generate 34.68 times more return on investment than MC Group. However, Samart Public is 34.68 times more volatile than MC Group Public. It trades about 0.06 of its potential returns per unit of risk. MC Group Public is currently generating about 0.0 per unit of risk. If you would invest 426.00 in Samart Public on September 14, 2024 and sell it today you would earn a total of 274.00 from holding Samart Public or generate 64.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samart Public vs. MC Group Public
Performance |
| Timeline |
| Samart Public |
| MC Group Public |
Samart Public and MC Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samart Public and MC Group
The main advantage of trading using opposite Samart Public and MC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samart Public position performs unexpectedly, MC Group 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 MC Group will offset losses from the drop in MC Group's long position.| Samart Public vs. Land and Houses | Samart Public vs. Delta Electronics Public | Samart Public vs. The Siam Cement | Samart Public vs. Bangkok Bank Public |
| MC Group vs. Hwa Fong Rubber | MC Group vs. AAPICO Hitech Public | MC Group vs. Haad Thip Public | MC Group vs. Italian Thai Development 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |