Correlation Between Moong Pattana and Thai Mitsuwa

Can any of the company-specific risk be diversified away by investing in both Moong Pattana and Thai Mitsuwa 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 Moong Pattana and Thai Mitsuwa into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Moong Pattana and Thai Mitsuwa

0.8

Correlation Coefficient

Moong Pattana  Thai Mitsuwa

Very poor diversification

The 3 months correlation between Moong and Thai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Moong Pattana International and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa Public and Moong Pattana 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 Moong Pattana International are associated (or correlated) with Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of Moong Pattana i.e., Moong Pattana and Thai Mitsuwa go up and down completely randomly.

Pair Corralation between Moong Pattana and Thai Mitsuwa

Assuming the 90 days trading horizon Moong Pattana International is expected to generate 0.77 times more return on investment than Thai Mitsuwa. However, Moong Pattana International is 1.29 times less risky than Thai Mitsuwa. It trades about -0.11 of its potential returns per unit of risk. Thai Mitsuwa Public is currently generating about -0.17 per unit of risk. If you would invest  206.00  in Moong Pattana International on December 27, 2024 and sell it today you would lose (13.00) from holding Moong Pattana International or give up 6.31% of portfolio value over 90 days.

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

Moong Pattana International  vs.  Thai Mitsuwa Public

Moong Pattana Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moong Pattana International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Thai Mitsuwa Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thai Mitsuwa 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 basic indicators 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.

Pair Trading with Moong Pattana and Thai Mitsuwa

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

The idea behind Moong Pattana International and Thai Mitsuwa 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.