Correlation Between Saha Pathanapibul and MK Restaurant

Can any of the company-specific risk be diversified away by investing in both Saha Pathanapibul and MK Restaurant 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 Saha Pathanapibul and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saha Pathanapibul Public and MK Restaurant Group, you can compare the effects of market volatilities on Saha Pathanapibul and MK Restaurant 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 Saha Pathanapibul with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saha Pathanapibul and MK Restaurant.

Diversification Opportunities for Saha Pathanapibul and MK Restaurant

-0.24

Correlation Coefficient

Saha Pathanapibul  MK Restaurant

Very good diversification

The 3 months correlation between Saha and MK Restaurant is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathanapibul Public and MK Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MK Restaurant Group and Saha Pathanapibul 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 Saha Pathanapibul Public are associated (or correlated) with MK Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MK Restaurant Group has no effect on the direction of Saha Pathanapibul i.e., Saha Pathanapibul and MK Restaurant go up and down completely randomly.

Pair Corralation between Saha Pathanapibul and MK Restaurant

Assuming the 90 days trading horizon Saha Pathanapibul Public is expected to generate 0.27 times more return on investment than MK Restaurant. However, Saha Pathanapibul Public is 3.75 times less risky than MK Restaurant. It trades about 0.04 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.13 per unit of risk. If you would invest  5,800  in Saha Pathanapibul Public on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Saha Pathanapibul Public or generate 1.72% return on investment over 90 days.

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

Saha Pathanapibul Public  vs.  MK Restaurant Group

Saha Pathanapibul Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saha Pathanapibul Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Saha Pathanapibul is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

MK Restaurant Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days MK Restaurant Group 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 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 Saha Pathanapibul and MK Restaurant

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

The idea behind Saha Pathanapibul Public and MK Restaurant Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.