Correlation Between Srisawad Power and MK Restaurant
Can any of the company-specific risk be diversified away by investing in both Srisawad Power 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 Srisawad Power and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and MK Restaurant Group, you can compare the effects of market volatilities on Srisawad Power 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 Srisawad Power with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and MK Restaurant.
Diversification Opportunities for Srisawad Power and MK Restaurant
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srisawad and MK Restaurant is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 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 Srisawad Power 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 Srisawad Power 1979 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 Srisawad Power i.e., Srisawad Power and MK Restaurant go up and down completely randomly.
Pair Corralation between Srisawad Power and MK Restaurant
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 1.04 times more return on investment than MK Restaurant. However, Srisawad Power is 1.04 times more volatile than MK Restaurant Group. It trades about -0.03 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.13 per unit of risk. If you would invest 4,025 in Srisawad Power 1979 on September 12, 2024 and sell it today you would lose (50.00) from holding Srisawad Power 1979 or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. MK Restaurant Group
Performance |
| Timeline |
| Srisawad Power 1979 |
| MK Restaurant Group |
Srisawad Power and MK Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and MK Restaurant
The main advantage of trading using opposite Srisawad Power and MK Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power 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.| Srisawad Power vs. KGI Securities Public | Srisawad Power vs. Lalin Property Public | Srisawad Power vs. Hwa Fong Rubber | Srisawad Power vs. MCS Steel Public |
| MK Restaurant vs. Hwa Fong Rubber | MK Restaurant vs. AAPICO Hitech Public | MK Restaurant vs. Haad Thip Public | MK Restaurant 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |