Correlation Between Namyong Terminal and Mena Transport
Can any of the company-specific risk be diversified away by investing in both Namyong Terminal and Mena Transport 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 Namyong Terminal and Mena Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namyong Terminal PCL and Mena Transport Public, you can compare the effects of market volatilities on Namyong Terminal and Mena Transport 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 Namyong Terminal with a short position of Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyong Terminal and Mena Transport.
Diversification Opportunities for Namyong Terminal and Mena Transport
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Namyong and Mena is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Namyong Terminal PCL and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport Public and Namyong Terminal 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 Namyong Terminal PCL are associated (or correlated) with Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of Namyong Terminal i.e., Namyong Terminal and Mena Transport go up and down completely randomly.
Pair Corralation between Namyong Terminal and Mena Transport
Assuming the 90 days trading horizon Namyong Terminal PCL is expected to generate 0.49 times more return on investment than Mena Transport. However, Namyong Terminal PCL is 2.04 times less risky than Mena Transport. It trades about -0.02 of its potential returns per unit of risk. Mena Transport Public is currently generating about -0.03 per unit of risk. If you would invest 338.00 in Namyong Terminal PCL on September 24, 2024 and sell it today you would lose (46.00) from holding Namyong Terminal PCL or give up 13.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Namyong Terminal PCL vs. Mena Transport Public
Performance |
Timeline |
Namyong Terminal PCL |
Mena Transport Public |
Namyong Terminal and Mena Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Namyong Terminal and Mena Transport
The main advantage of trading using opposite Namyong Terminal and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyong Terminal position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport's long position.Namyong Terminal vs. Land and Houses | Namyong Terminal vs. CH Karnchang Public | Namyong Terminal vs. Krung Thai Bank | Namyong Terminal vs. Bangkok Bank Public |
Mena Transport vs. Namyong Terminal PCL | Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Karmarts Public | Mena Transport vs. Jay Mart Public |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |