Correlation Between Nakornthon Hospital and MFC Asset

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

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

Diversification Opportunities for Nakornthon Hospital and MFC Asset

-0.68

Correlation Coefficient

Nakornthon Hospital  MFC Asset

Excellent diversification

The 3 months correlation between Nakornthon and MFC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nakornthon Hospital Public and MFC Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Asset Management and Nakornthon Hospital 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 Nakornthon Hospital Public are associated (or correlated) with MFC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Asset Management has no effect on the direction of Nakornthon Hospital i.e., Nakornthon Hospital and MFC Asset go up and down completely randomly.

Pair Corralation between Nakornthon Hospital and MFC Asset

Assuming the 90 days trading horizon Nakornthon Hospital Public is expected to under-perform the MFC Asset. But the stock apears to be less risky and, when comparing its historical volatility, Nakornthon Hospital Public is 2.28 times less risky than MFC Asset. The stock trades about -0.14 of its potential returns per unit of risk. The MFC Asset Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,548  in MFC Asset Management on April 24, 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 Against
Strength	Weak
Accuracy	98.31%
Values	Daily Returns

Nakornthon Hospital Public  vs.  MFC Asset Management

Nakornthon Hospital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nakornthon Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

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.

Pair Trading with Nakornthon Hospital and MFC Asset

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

The idea behind Nakornthon Hospital Public and MFC Asset Management 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..