Correlation Between Stock Exchange and MCOT Public
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and MCOT Public 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 Stock Exchange and MCOT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and MCOT Public, you can compare the effects of market volatilities on Stock Exchange and MCOT Public 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 Stock Exchange with a short position of MCOT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and MCOT Public.
Diversification Opportunities for Stock Exchange and MCOT Public
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stock and MCOT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and MCOT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCOT Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with MCOT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCOT Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and MCOT Public go up and down completely randomly.
Pair Corralation between Stock Exchange and MCOT Public
Assuming the 90 days trading horizon Stock Exchange is expected to generate 23.87 times less return on investment than MCOT Public. But when comparing it to its historical volatility, Stock Exchange Of is 8.56 times less risky than MCOT Public. It trades about 0.03 of its potential returns per unit of risk. MCOT Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 330.00 in MCOT Public on September 4, 2024 and sell it today you would earn a total of 400.00 from holding MCOT Public or generate 121.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.08% |
| Values | Daily Returns |
Stock Exchange Of vs. MCOT Public
Performance |
| Timeline |
Stock Exchange and MCOT Public Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
MCOT Public
Pair trading matchups for MCOT Public
Pair Trading with Stock Exchange and MCOT Public
The main advantage of trading using opposite Stock Exchange and MCOT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, MCOT Public 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 MCOT Public will offset losses from the drop in MCOT Public's long position.| Stock Exchange vs. MFC Asset Management | Stock Exchange vs. Mena Transport Public | Stock Exchange vs. Lohakit Metal Public | Stock Exchange vs. Porn Prom Metal |
| MCOT Public vs. BEC World Public | MCOT Public vs. Major Cineplex Group | MCOT Public vs. Italian Thai Development Public | MCOT Public vs. Dynasty Ceramic 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |