Correlation Between MFC Nichada and Major Cineplex

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

By analyzing existing cross correlation between MFC Nichada Thani Property and Major Cineplex Lifestyle, you can compare the effects of market volatilities on MFC Nichada and Major Cineplex 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 Nichada with a short position of Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Nichada and Major Cineplex.

Diversification Opportunities for MFC Nichada and Major Cineplex

-0.11

Correlation Coefficient

MFC Nichada  Major Cineplex

Good diversification

The 3 months correlation between MFC and Major is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MFC Nichada Thani Property and Major Cineplex Lifestyle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Lifestyle and MFC Nichada 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 Nichada Thani Property are associated (or correlated) with Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Lifestyle has no effect on the direction of MFC Nichada i.e., MFC Nichada and Major Cineplex go up and down completely randomly.

Pair Corralation between MFC Nichada and Major Cineplex

Assuming the 90 days trading horizon MFC Nichada Thani Property is expected to generate 2.73 times more return on investment than Major Cineplex. However, MFC Nichada is 2.73 times more volatile than Major Cineplex Lifestyle. It trades about 0.05 of its potential returns per unit of risk. Major Cineplex Lifestyle is currently generating about 0.12 per unit of risk. If you would invest  466.00  in MFC Nichada Thani Property on April 24, 2025 and sell it today you would earn a total of  24.00  from holding MFC Nichada Thani Property or generate 5.15% return on investment over 90 days.

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

MFC Nichada Thani Property  vs.  Major Cineplex Lifestyle

MFC Nichada Thani

Risk-Adjusted Performance

Insignificant

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

Major Cineplex Lifestyle

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Major Cineplex Lifestyle are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Major Cineplex may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MFC Nichada and Major Cineplex

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

The idea behind MFC Nichada Thani Property and Major Cineplex Lifestyle 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.