Correlation Between Muangthai Capital and AIRA Factoring
Can any of the company-specific risk be diversified away by investing in both Muangthai Capital and AIRA Factoring 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 Muangthai Capital and AIRA Factoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muangthai Capital Public and AIRA Factoring Public, you can compare the effects of market volatilities on Muangthai Capital and AIRA Factoring 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 Muangthai Capital with a short position of AIRA Factoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muangthai Capital and AIRA Factoring.
Diversification Opportunities for Muangthai Capital and AIRA Factoring
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Muangthai and AIRA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Muangthai Capital Public and AIRA Factoring Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRA Factoring Public and Muangthai Capital 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 Muangthai Capital Public are associated (or correlated) with AIRA Factoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRA Factoring Public has no effect on the direction of Muangthai Capital i.e., Muangthai Capital and AIRA Factoring go up and down completely randomly.
Pair Corralation between Muangthai Capital and AIRA Factoring
Assuming the 90 days trading horizon Muangthai Capital Public is expected to under-perform the AIRA Factoring. But the stock apears to be less risky and, when comparing its historical volatility, Muangthai Capital Public is 1.85 times less risky than AIRA Factoring. The stock trades about -0.18 of its potential returns per unit of risk. The AIRA Factoring Public is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 59.00 in AIRA Factoring Public on September 24, 2024 and sell it today you would earn a total of 9.00 from holding AIRA Factoring Public or generate 15.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Muangthai Capital Public vs. AIRA Factoring Public
Performance |
Timeline |
Muangthai Capital Public |
AIRA Factoring Public |
Muangthai Capital and AIRA Factoring Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Muangthai Capital and AIRA Factoring
The main advantage of trading using opposite Muangthai Capital and AIRA Factoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muangthai Capital position performs unexpectedly, AIRA Factoring 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 AIRA Factoring will offset losses from the drop in AIRA Factoring's long position.Muangthai Capital vs. Amanah Leasing Public | Muangthai Capital vs. Infraset Public | Muangthai Capital vs. JMT Network Services |
AIRA Factoring vs. Amanah Leasing Public | AIRA Factoring vs. Muangthai Capital Public | AIRA Factoring vs. Infraset Public | AIRA Factoring vs. JMT Network Services |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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