Correlation Between MFC Asset and Thanachart Capital

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

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

Diversification Opportunities for MFC Asset and Thanachart Capital

-0.2

Correlation Coefficient

MFC Asset  Thanachart Capital

Good diversification

The 3 months correlation between MFC and Thanachart is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MFC Asset Management and Thanachart Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanachart Capital Public and MFC Asset 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 Asset Management are associated (or correlated) with Thanachart Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanachart Capital Public has no effect on the direction of MFC Asset i.e., MFC Asset and Thanachart Capital go up and down completely randomly.

Pair Corralation between MFC Asset and Thanachart Capital

Assuming the 90 days trading horizon MFC Asset Management is expected to under-perform the Thanachart Capital. In addition to that, MFC Asset is 2.75 times more volatile than Thanachart Capital Public. It trades about -0.01 of its total potential returns per unit of risk. Thanachart Capital Public is currently generating about -0.01 per unit of volatility. If you would invest  4,875  in Thanachart Capital Public on May 8, 2025 and sell it today you would lose (50.00) from holding Thanachart Capital Public or give up 1.03% of portfolio value over 90 days.

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

MFC Asset Management  vs.  Thanachart Capital Public

MFC Asset Management

Risk-Adjusted Performance

Weakest

Over the last 90 days MFC Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, MFC Asset is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Thanachart Capital Public

Risk-Adjusted Performance

Weakest

Over the last 90 days Thanachart Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with MFC Asset and Thanachart Capital

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

The idea behind MFC Asset Management and Thanachart Capital Public 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.