Correlation Between Asia Plus and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Asia Plus and Kiatnakin Phatra 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 Asia Plus and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Plus Group and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Asia Plus and Kiatnakin Phatra 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 Asia Plus with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Plus and Kiatnakin Phatra.
Diversification Opportunities for Asia Plus and Kiatnakin Phatra
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Kiatnakin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Asia Plus Group and Kiatnakin Phatra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiatnakin Phatra Bank and Asia Plus 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 Asia Plus Group are associated (or correlated) with Kiatnakin Phatra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiatnakin Phatra Bank has no effect on the direction of Asia Plus i.e., Asia Plus and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Asia Plus and Kiatnakin Phatra
Assuming the 90 days trading horizon Asia Plus Group is expected to generate 0.63 times more return on investment than Kiatnakin Phatra. However, Asia Plus Group is 1.58 times less risky than Kiatnakin Phatra. It trades about -0.16 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.24 per unit of risk. If you would invest 252.00 in Asia Plus Group on August 30, 2024 and sell it today you would lose (8.00) from holding Asia Plus Group or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Plus Group vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Asia Plus Group |
| Kiatnakin Phatra Bank |
Asia Plus and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Plus and Kiatnakin Phatra
The main advantage of trading using opposite Asia Plus and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Plus position performs unexpectedly, Kiatnakin Phatra 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 Kiatnakin Phatra will offset losses from the drop in Kiatnakin Phatra's long position.| Asia Plus vs. Karmarts Public | Asia Plus vs. Kang Yong Electric | Asia Plus vs. SCG PACKAGING PCL NVDR | Asia Plus vs. CK Power Public |
| Kiatnakin Phatra vs. Karmarts Public | Kiatnakin Phatra vs. Kang Yong Electric | Kiatnakin Phatra vs. SCG PACKAGING PCL NVDR | Kiatnakin Phatra vs. CK Power Public |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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