Correlation Between Thonburi Medical and Mitsib Leasing
Can any of the company-specific risk be diversified away by investing in both Thonburi Medical and Mitsib Leasing 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 Thonburi Medical and Mitsib Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thonburi Medical Centre and Mitsib Leasing Public, you can compare the effects of market volatilities on Thonburi Medical and Mitsib Leasing 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 Thonburi Medical with a short position of Mitsib Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Medical and Mitsib Leasing.
Diversification Opportunities for Thonburi Medical and Mitsib Leasing
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thonburi and Mitsib is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Medical Centre and Mitsib Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsib Leasing Public and Thonburi Medical 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 Thonburi Medical Centre are associated (or correlated) with Mitsib Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsib Leasing Public has no effect on the direction of Thonburi Medical i.e., Thonburi Medical and Mitsib Leasing go up and down completely randomly.
Pair Corralation between Thonburi Medical and Mitsib Leasing
Assuming the 90 days trading horizon Thonburi Medical Centre is expected to generate 0.78 times more return on investment than Mitsib Leasing. However, Thonburi Medical Centre is 1.28 times less risky than Mitsib Leasing. It trades about 0.04 of its potential returns per unit of risk. Mitsib Leasing Public is currently generating about -0.1 per unit of risk. If you would invest 9,250 in Thonburi Medical Centre on September 15, 2024 and sell it today you would earn a total of 200.00 from holding Thonburi Medical Centre or generate 2.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Thonburi Medical Centre vs. Mitsib Leasing Public
Performance |
Timeline |
Thonburi Medical Centre |
Mitsib Leasing Public |
Thonburi Medical and Mitsib Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thonburi Medical and Mitsib Leasing
The main advantage of trading using opposite Thonburi Medical and Mitsib Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Medical position performs unexpectedly, Mitsib Leasing 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 Mitsib Leasing will offset losses from the drop in Mitsib Leasing's long position.Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital Public |
Mitsib Leasing vs. Multibax Public | Mitsib Leasing vs. The Erawan Group | Mitsib Leasing vs. Jay Mart Public | Mitsib Leasing vs. Airports of Thailand |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |