Correlation Between Mono Next and Trinity Watthana

Can any of the company-specific risk be diversified away by investing in both Mono Next and Trinity Watthana 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 Mono Next and Trinity Watthana into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Mono Next and Trinity Watthana

0.95

Correlation Coefficient

Mono Next  Trinity Watthana

Almost no diversification

The 3 months correlation between Mono and Trinity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mono Next Public and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana Public and Mono Next 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 Mono Next Public are associated (or correlated) with Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of Mono Next i.e., Mono Next and Trinity Watthana go up and down completely randomly.

Pair Corralation between Mono Next and Trinity Watthana

Assuming the 90 days trading horizon Mono Next Public is expected to under-perform the Trinity Watthana. In addition to that, Mono Next is 2.42 times more volatile than Trinity Watthana Public. It trades about -0.13 of its total potential returns per unit of risk. Trinity Watthana Public is currently generating about -0.28 per unit of volatility. If you would invest  440.00  in Trinity Watthana Public on December 21, 2024 and sell it today you would lose (142.00) from holding Trinity Watthana Public or give up 32.27% of portfolio value over 90 days.

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

Mono Next Public  vs.  Trinity Watthana Public

Mono Next Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mono Next Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Trinity Watthana Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trinity Watthana Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Mono Next and Trinity Watthana

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

The idea behind Mono Next Public and Trinity Watthana 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.