Correlation Between Thai Rung and Moshi Moshi
Can any of the company-specific risk be diversified away by investing in both Thai Rung and Moshi Moshi 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 Rung and Moshi Moshi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Rung Union and Moshi Moshi Retail, you can compare the effects of market volatilities on Thai Rung and Moshi Moshi 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 Rung with a short position of Moshi Moshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Rung and Moshi Moshi.
Diversification Opportunities for Thai Rung and Moshi Moshi
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thai and Moshi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Thai Rung Union and Moshi Moshi Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moshi Moshi Retail and Thai Rung 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 Rung Union are associated (or correlated) with Moshi Moshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moshi Moshi Retail has no effect on the direction of Thai Rung i.e., Thai Rung and Moshi Moshi go up and down completely randomly.
Pair Corralation between Thai Rung and Moshi Moshi
Assuming the 90 days trading horizon Thai Rung Union is expected to generate 0.49 times more return on investment than Moshi Moshi. However, Thai Rung Union is 2.06 times less risky than Moshi Moshi. It trades about 0.35 of its potential returns per unit of risk. Moshi Moshi Retail is currently generating about -0.14 per unit of risk. If you would invest 318.00 in Thai Rung Union on September 25, 2024 and sell it today you would earn a total of 22.00 from holding Thai Rung Union or generate 6.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Thai Rung Union vs. Moshi Moshi Retail
Performance |
Timeline |
Thai Rung Union |
Moshi Moshi Retail |
Thai Rung and Moshi Moshi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thai Rung and Moshi Moshi
The main advantage of trading using opposite Thai Rung and Moshi Moshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Rung position performs unexpectedly, Moshi Moshi 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 Moshi Moshi will offset losses from the drop in Moshi Moshi's long position.Thai Rung vs. CP ALL Public | Thai Rung vs. Bangkok Dusit Medical | Thai Rung vs. Airports of Thailand | Thai Rung vs. Kasikornbank Public |
Moshi Moshi vs. Central Retail | Moshi Moshi vs. Thai Life Insurance | Moshi Moshi vs. Thai Rung Union | Moshi Moshi vs. Samchai Steel Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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