Correlation Between Ai Energy and Krung Thai
Can any of the company-specific risk be diversified away by investing in both Ai Energy and Krung Thai 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 Ai Energy and Krung Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ai Energy Public and Krung Thai Bank, you can compare the effects of market volatilities on Ai Energy and Krung Thai 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 Ai Energy with a short position of Krung Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ai Energy and Krung Thai.
Diversification Opportunities for Ai Energy and Krung Thai
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIE and Krung is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ai Energy Public and Krung Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krung Thai Bank and Ai Energy 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 Ai Energy Public are associated (or correlated) with Krung Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krung Thai Bank has no effect on the direction of Ai Energy i.e., Ai Energy and Krung Thai go up and down completely randomly.
Pair Corralation between Ai Energy and Krung Thai
Assuming the 90 days trading horizon Ai Energy Public is expected to generate 35.2 times more return on investment than Krung Thai. However, Ai Energy is 35.2 times more volatile than Krung Thai Bank. It trades about 0.04 of its potential returns per unit of risk. Krung Thai Bank is currently generating about 0.03 per unit of risk. If you would invest 270.00 in Ai Energy Public on August 27, 2024 and sell it today you would lose (160.00) from holding Ai Energy Public or give up 59.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ai Energy Public vs. Krung Thai Bank
Performance |
| Timeline |
| Ai Energy Public |
| Krung Thai Bank |
Ai Energy and Krung Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ai Energy and Krung Thai
The main advantage of trading using opposite Ai Energy and Krung Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ai Energy position performs unexpectedly, Krung Thai 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 Krung Thai will offset losses from the drop in Krung Thai's long position.| Ai Energy vs. Krung Thai Bank | Ai Energy vs. Thai Union Group | Ai Energy vs. PTT Public | Ai Energy vs. PTT Exploration and |
| Krung Thai vs. Supalai Public | Krung Thai vs. The Erawan Group | Krung Thai vs. Ditto Public | Krung Thai vs. Airports of Thailand |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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