Correlation Between Minor International and Muangthai Capital

Can any of the company-specific risk be diversified away by investing in both Minor International and Muangthai Capital 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 Minor International and Muangthai Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Minor International Public and Muangthai Capital Public, you can compare the effects of market volatilities on Minor International and Muangthai Capital 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 Minor International with a short position of Muangthai Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Muangthai Capital.

Diversification Opportunities for Minor International and Muangthai Capital

0.41

Correlation Coefficient

Minor International  Muangthai Capital

Very weak diversification

The 3 months correlation between Minor and Muangthai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Minor International Public and Muangthai Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muangthai Capital Public and Minor International 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 Minor International Public are associated (or correlated) with Muangthai Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muangthai Capital Public has no effect on the direction of Minor International i.e., Minor International and Muangthai Capital go up and down completely randomly.

Pair Corralation between Minor International and Muangthai Capital

Assuming the 90 days trading horizon Minor International Public is expected to generate 0.82 times more return on investment than Muangthai Capital. However, Minor International Public is 1.22 times less risky than Muangthai Capital. It trades about 0.02 of its potential returns per unit of risk. Muangthai Capital Public is currently generating about -0.13 per unit of risk. If you would invest  2,625  in Minor International Public on December 31, 2024 and sell it today you would earn a total of  25.00  from holding Minor International Public or generate 0.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Minor International Public  vs.  Muangthai Capital Public

Minor International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Minor International Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Minor International is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Muangthai Capital Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Muangthai Capital 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 fundamental indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Minor International and Muangthai Capital

The main advantage of trading using opposite Minor International and Muangthai Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, Muangthai Capital 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 Muangthai Capital will offset losses from the drop in Muangthai Capital's long position.

The idea behind Minor International Public and Muangthai Capital 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.

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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.