Correlation Between MFC Asset and Ladprao General

Can any of the company-specific risk be diversified away by investing in both MFC Asset and Ladprao General 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 MFC Asset and Ladprao General into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MFC Asset Management and Ladprao General Hospital, you can compare the effects of market volatilities on MFC Asset and Ladprao General 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 MFC Asset with a short position of Ladprao General. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Asset and Ladprao General.

Diversification Opportunities for MFC Asset and Ladprao General

0.47

Correlation Coefficient

MFC Asset  Ladprao General

Very weak diversification

The 3 months correlation between MFC and Ladprao is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MFC Asset Management and Ladprao General Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladprao General Hospital and MFC Asset 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 MFC Asset Management are associated (or correlated) with Ladprao General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladprao General Hospital has no effect on the direction of MFC Asset i.e., MFC Asset and Ladprao General go up and down completely randomly.

Pair Corralation between MFC Asset and Ladprao General

Assuming the 90 days trading horizon MFC Asset Management is expected to generate 3.95 times more return on investment than Ladprao General. However, MFC Asset is 3.95 times more volatile than Ladprao General Hospital. It trades about 0.04 of its potential returns per unit of risk. Ladprao General Hospital is currently generating about 0.1 per unit of risk. If you would invest  2,548  in MFC Asset Management on April 25, 2025 and sell it today you would earn a total of  127.00  from holding MFC Asset Management or generate 4.98% return on investment over 90 days.

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

MFC Asset Management  vs.  Ladprao General Hospital

MFC Asset Management

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MFC Asset Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, MFC Asset may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ladprao General Hospital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ladprao General Hospital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical indicators, Ladprao General is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with MFC Asset and Ladprao General

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

The idea behind MFC Asset Management and Ladprao General 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.