Correlation Between Mangalam Cement and Thai Union
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By analyzing existing cross correlation between Mangalam Cement Limited and Thai Union Group, you can compare the effects of market volatilities on Mangalam Cement and Thai Union 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 Mangalam Cement with a short position of Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangalam Cement and Thai Union.
Diversification Opportunities for Mangalam Cement and Thai Union
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mangalam and Thai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mangalam Cement Limited and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group and Mangalam Cement 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 Mangalam Cement Limited are associated (or correlated) with Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Mangalam Cement i.e., Mangalam Cement and Thai Union go up and down completely randomly.
Pair Corralation between Mangalam Cement and Thai Union
Assuming the 90 days trading horizon Mangalam Cement Limited is expected to generate 2.29 times more return on investment than Thai Union. However, Mangalam Cement is 2.29 times more volatile than Thai Union Group. It trades about 0.37 of its potential returns per unit of risk. Thai Union Group is currently generating about 0.1 per unit of risk. If you would invest 75,180 in Mangalam Cement Limited on February 4, 2024 and sell it today you would earn a total of 16,755 from holding Mangalam Cement Limited or generate 22.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.47% |
Values | Daily Returns |
Mangalam Cement Limited vs. Thai Union Group
Performance |
Timeline |
Mangalam Cement |
Thai Union Group |
Mangalam Cement and Thai Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mangalam Cement and Thai Union
The main advantage of trading using opposite Mangalam Cement and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangalam Cement position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union's long position.The idea behind Mangalam Cement Limited and Thai Union 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.Thai Union vs. Minor International Public | Thai Union vs. Advanced Info Service | Thai Union vs. Bangkok Dusit Medical |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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