Correlation Between Thai Film and Multibax Public
Can any of the company-specific risk be diversified away by investing in both Thai Film and Multibax 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 Thai Film and Multibax Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Film Industries and Multibax Public, you can compare the effects of market volatilities on Thai Film and Multibax 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 Thai Film with a short position of Multibax Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Film and Multibax Public.
Diversification Opportunities for Thai Film and Multibax Public
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thai and Multibax is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Thai Film Industries and Multibax Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multibax Public and Thai Film 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 Thai Film Industries are associated (or correlated) with Multibax Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multibax Public has no effect on the direction of Thai Film i.e., Thai Film and Multibax Public go up and down completely randomly.
Pair Corralation between Thai Film and Multibax Public
Assuming the 90 days trading horizon Thai Film Industries is expected to generate 3.0 times more return on investment than Multibax Public. However, Thai Film is 3.0 times more volatile than Multibax Public. It trades about -0.01 of its potential returns per unit of risk. Multibax Public is currently generating about -0.4 per unit of risk. If you would invest 8.00 in Thai Film Industries on September 13, 2024 and sell it today you would lose (1.00) from holding Thai Film Industries or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Film Industries vs. Multibax Public
Performance |
| Timeline |
| Thai Film Industries |
| Multibax Public |
Thai Film and Multibax Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Film and Multibax Public
The main advantage of trading using opposite Thai Film and Multibax Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Film position performs unexpectedly, Multibax 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 Multibax Public will offset losses from the drop in Multibax Public's long position.| Thai Film vs. Thantawan Industry Public | Thai Film vs. The Erawan Group | Thai Film vs. Jay Mart Public | Thai Film vs. Airports of Thailand |
| Multibax Public vs. Lease IT Public | Multibax Public vs. MCS Steel Public | Multibax Public vs. Kingsmen CMTI Public | Multibax Public vs. Moong Pattana International |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |