Correlation Between Saha Pathana and MK Restaurant
Can any of the company-specific risk be diversified away by investing in both Saha Pathana 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 Saha Pathana and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saha Pathana Inter Holding and MK Restaurant Group, you can compare the effects of market volatilities on Saha Pathana 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 Saha Pathana with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saha Pathana and MK Restaurant.
Diversification Opportunities for Saha Pathana and MK Restaurant
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saha and MK Restaurant is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathana Inter Holding 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 Saha Pathana 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 Saha Pathana Inter Holding 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 Saha Pathana i.e., Saha Pathana and MK Restaurant go up and down completely randomly.
Pair Corralation between Saha Pathana and MK Restaurant
Assuming the 90 days trading horizon Saha Pathana Inter Holding is expected to generate 0.46 times more return on investment than MK Restaurant. However, Saha Pathana Inter Holding is 2.16 times less risky than MK Restaurant. It trades about -0.43 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.57 per unit of risk. If you would invest 6,400 in Saha Pathana Inter Holding on November 2, 2024 and sell it today you would lose (600.00) from holding Saha Pathana Inter Holding or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saha Pathana Inter Holding vs. MK Restaurant Group
Performance |
| Timeline |
| Saha Pathana Inter |
| MK Restaurant Group |
Saha Pathana and MK Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saha Pathana and MK Restaurant
The main advantage of trading using opposite Saha Pathana and MK Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saha Pathana 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.| Saha Pathana vs. Wave Entertainment Public | Saha Pathana vs. Vibhavadi Medical Center | Saha Pathana vs. VGI Public | Saha Pathana vs. WHA Public |
| MK Restaurant vs. Minor International Public | MK Restaurant vs. Home Product Center | MK Restaurant vs. CP ALL Public | MK Restaurant vs. Central Pattana 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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