Correlation Between Mitsib Leasing and Thai Nakarin

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

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

Diversification Opportunities for Mitsib Leasing and Thai Nakarin

-0.63

Correlation Coefficient

Mitsib Leasing  Thai Nakarin

Excellent diversification

The 3 months correlation between Mitsib and Thai is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mitsib Leasing Public and Thai Nakarin Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Nakarin Hospital and Mitsib Leasing 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 Mitsib Leasing Public are associated (or correlated) with Thai Nakarin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Nakarin Hospital has no effect on the direction of Mitsib Leasing i.e., Mitsib Leasing and Thai Nakarin go up and down completely randomly.

Pair Corralation between Mitsib Leasing and Thai Nakarin

Assuming the 90 days trading horizon Mitsib Leasing Public is expected to under-perform the Thai Nakarin. In addition to that, Mitsib Leasing is 2.1 times more volatile than Thai Nakarin Hospital. It trades about -0.08 of its total potential returns per unit of risk. Thai Nakarin Hospital is currently generating about 0.19 per unit of volatility. If you would invest  3,519  in Thai Nakarin Hospital on September 14, 2024 and sell it today you would earn a total of  256.00  from holding Thai Nakarin Hospital or generate 7.27% return on investment over 90 days.

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

Mitsib Leasing Public  vs.  Thai Nakarin Hospital

Mitsib Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mitsib Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Thai Nakarin Hospital

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Nakarin Hospital are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical indicators, Thai Nakarin may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mitsib Leasing and Thai Nakarin

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

The idea behind Mitsib Leasing Public and Thai Nakarin Hospital 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.