Correlation Between Thanachart Capital and MK Restaurant

Can any of the company-specific risk be diversified away by investing in both Thanachart Capital and MK Restaurant 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 Thanachart Capital and MK Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thanachart Capital Public and MK Restaurant Group, you can compare the effects of market volatilities on Thanachart Capital and MK Restaurant 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 Thanachart Capital with a short position of MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanachart Capital and MK Restaurant.

Diversification Opportunities for Thanachart Capital and MK Restaurant

0.23

Correlation Coefficient

Thanachart Capital  MK Restaurant

Modest diversification

The 3 months correlation between Thanachart and MK Restaurant is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital Public and MK Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MK Restaurant Group and Thanachart Capital 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 Thanachart Capital Public are associated (or correlated) with MK Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MK Restaurant Group has no effect on the direction of Thanachart Capital i.e., Thanachart Capital and MK Restaurant go up and down completely randomly.

Pair Corralation between Thanachart Capital and MK Restaurant

Assuming the 90 days trading horizon Thanachart Capital is expected to generate 7.84 times less return on investment than MK Restaurant. But when comparing it to its historical volatility, Thanachart Capital Public is 2.79 times less risky than MK Restaurant. It trades about 0.03 of its potential returns per unit of risk. MK Restaurant Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,771  in MK Restaurant Group on April 24, 2025 and sell it today you would earn a total of  239.00  from holding MK Restaurant Group or generate 13.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Thanachart Capital Public  vs.  MK Restaurant Group

Thanachart Capital Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thanachart Capital Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Thanachart Capital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

MK Restaurant Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MK Restaurant Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, MK Restaurant disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thanachart Capital and MK Restaurant

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

The idea behind Thanachart Capital Public and MK Restaurant 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.