Correlation Between Megachem Public and Thanapiriya Public

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Megachem Public and Thanapiriya 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 Megachem Public and Thanapiriya Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Megachem Public and Thanapiriya Public, you can compare the effects of market volatilities on Megachem Public and Thanapiriya 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 Megachem Public with a short position of Thanapiriya Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megachem Public and Thanapiriya Public.

Diversification Opportunities for Megachem Public and Thanapiriya Public

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Megachem and Thanapiriya is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Megachem Public and Thanapiriya Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanapiriya Public and Megachem Public 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 Megachem Public are associated (or correlated) with Thanapiriya Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanapiriya Public has no effect on the direction of Megachem Public i.e., Megachem Public and Thanapiriya Public go up and down completely randomly.

Pair Corralation between Megachem Public and Thanapiriya Public

Assuming the 90 days trading horizon Megachem Public is expected to generate 0.95 times more return on investment than Thanapiriya Public. However, Megachem Public is 1.06 times less risky than Thanapiriya Public. It trades about -0.1 of its potential returns per unit of risk. Thanapiriya Public is currently generating about -0.43 per unit of risk. If you would invest  202.00  in Megachem Public on September 22, 2024 and sell it today you would lose (5.00) from holding Megachem Public or give up 2.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.24%
ValuesDaily Returns

Megachem Public  vs.  Thanapiriya Public

 Performance 
       Timeline  
Megachem Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Megachem Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Thanapiriya Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Thanapiriya Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Megachem Public and Thanapiriya Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Megachem Public and Thanapiriya Public

The main advantage of trading using opposite Megachem Public and Thanapiriya Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megachem Public position performs unexpectedly, Thanapiriya 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 Thanapiriya Public will offset losses from the drop in Thanapiriya Public's long position.
The idea behind Megachem Public and Thanapiriya Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios