Correlation Between Multibax Public and AEON Thana

Can any of the company-specific risk be diversified away by investing in both Multibax Public and AEON Thana 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 Multibax Public and AEON Thana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multibax Public and AEON Thana Sinsap, you can compare the effects of market volatilities on Multibax Public and AEON Thana 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 Multibax Public with a short position of AEON Thana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multibax Public and AEON Thana.

Diversification Opportunities for Multibax Public and AEON Thana

-0.12

Correlation Coefficient

Multibax Public  AEON Thana

Good diversification

The 3 months correlation between Multibax and AEON is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Multibax Public and AEON Thana Sinsap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON Thana Sinsap and Multibax Public 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 Multibax Public are associated (or correlated) with AEON Thana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON Thana Sinsap has no effect on the direction of Multibax Public i.e., Multibax Public and AEON Thana go up and down completely randomly.

Pair Corralation between Multibax Public and AEON Thana

Assuming the 90 days trading horizon Multibax Public is expected to under-perform the AEON Thana. But the stock apears to be less risky and, when comparing its historical volatility, Multibax Public is 57.66 times less risky than AEON Thana. The stock trades about -0.27 of its potential returns per unit of risk. The AEON Thana Sinsap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  16,575  in AEON Thana Sinsap on September 12, 2024 and sell it today you would earn a total of  0.00  from holding AEON Thana Sinsap or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Multibax Public  vs.  AEON Thana Sinsap

Multibax Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multibax Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AEON Thana Sinsap

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AEON Thana Sinsap are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AEON Thana sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Multibax Public and AEON Thana

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

The idea behind Multibax Public and AEON Thana Sinsap 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.