Correlation Between Muang Thai and Porn Prom

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

By analyzing existing cross correlation between Muang Thai Insurance and Porn Prom Metal, you can compare the effects of market volatilities on Muang Thai and Porn Prom 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 Muang Thai with a short position of Porn Prom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muang Thai and Porn Prom.

Diversification Opportunities for Muang Thai and Porn Prom

-0.58

Correlation Coefficient

Muang Thai  Porn Prom

Excellent diversification

The 3 months correlation between Muang and Porn is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Muang Thai Insurance and Porn Prom Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porn Prom Metal and Muang Thai 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 Muang Thai Insurance are associated (or correlated) with Porn Prom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porn Prom Metal has no effect on the direction of Muang Thai i.e., Muang Thai and Porn Prom go up and down completely randomly.

Pair Corralation between Muang Thai and Porn Prom

Assuming the 90 days trading horizon Muang Thai Insurance is expected to generate 1.14 times more return on investment than Porn Prom. However, Muang Thai is 1.14 times more volatile than Porn Prom Metal. It trades about 0.24 of its potential returns per unit of risk. Porn Prom Metal is currently generating about 0.01 per unit of risk. If you would invest  1,080  in Muang Thai Insurance on April 25, 2025 and sell it today you would earn a total of  480.00  from holding Muang Thai Insurance or generate 44.44% return on investment over 90 days.

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

Muang Thai Insurance  vs.  Porn Prom Metal

Muang Thai Insurance

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Muang Thai Insurance are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward indicators, Muang Thai disclosed solid returns over the last few months and may actually be approaching a breakup point.

Porn Prom Metal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Porn Prom Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Porn Prom 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 Muang Thai and Porn Prom

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

The idea behind Muang Thai Insurance and Porn Prom Metal 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.