Correlation Between Thai Mitsuwa and Moong Pattana

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

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

Diversification Opportunities for Thai Mitsuwa and Moong Pattana

0.84

Correlation Coefficient

Thai Mitsuwa  Moong Pattana

Very poor diversification

The 3 months correlation between Thai and Moong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Thai Mitsuwa Public and Moong Pattana International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moong Pattana Intern and Thai Mitsuwa 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 Thai Mitsuwa Public are associated (or correlated) with Moong Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moong Pattana Intern has no effect on the direction of Thai Mitsuwa i.e., Thai Mitsuwa and Moong Pattana go up and down completely randomly.

Pair Corralation between Thai Mitsuwa and Moong Pattana

Assuming the 90 days trading horizon Thai Mitsuwa Public is expected to under-perform the Moong Pattana. In addition to that, Thai Mitsuwa is 1.29 times more volatile than Moong Pattana International. It trades about -0.18 of its total potential returns per unit of risk. Moong Pattana International is currently generating about -0.13 per unit of volatility. If you would invest  208.00  in Moong Pattana International on December 29, 2024 and sell it today you would lose (16.00) from holding Moong Pattana International or give up 7.69% of portfolio value over 90 days.

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

Thai Mitsuwa Public  vs.  Moong Pattana International

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.

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.

Pair Trading with Thai Mitsuwa and Moong Pattana

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

The idea behind Thai Mitsuwa Public and Moong Pattana International 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.