Correlation Between Stock Exchange and Major Cineplex
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Major Cineplex 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 Major Cineplex 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 Major Cineplex Lifestyle, you can compare the effects of market volatilities on Stock Exchange and Major Cineplex 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 Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Major Cineplex.
Diversification Opportunities for Stock Exchange and Major Cineplex
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stock and Major is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Major Cineplex Lifestyle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Lifestyle 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 Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Lifestyle has no effect on the direction of Stock Exchange i.e., Stock Exchange and Major Cineplex go up and down completely randomly.
Pair Corralation between Stock Exchange and Major Cineplex
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Major Cineplex. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 1.58 times less risky than Major Cineplex. The index trades about -0.09 of its potential returns per unit of risk. The Major Cineplex Lifestyle is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Major Cineplex Lifestyle on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Major Cineplex Lifestyle or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Major Cineplex Lifestyle
Performance |
| Timeline |
Stock Exchange and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Major Cineplex Lifestyle
Pair trading matchups for Major Cineplex
Pair Trading with Stock Exchange and Major Cineplex
The main advantage of trading using opposite Stock Exchange and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Major Cineplex 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 Major Cineplex will offset losses from the drop in Major Cineplex's long position.| Stock Exchange vs. Jasmine Telecom Systems | Stock Exchange vs. TMBThanachart Bank Public | Stock Exchange vs. Information and Communication | Stock Exchange vs. TISCO Financial Group |
| Major Cineplex vs. LH Shopping Centers | Major Cineplex vs. Land and Houses | Major Cineplex vs. Quality Houses Property | Major Cineplex vs. Impact Growth REIT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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